Xbox 360 is not exactly Backward Compatible
From FAQ ign.com:
Will Xbox 360 be backwards compatible?
The problem with backwards compatibility is that the original Xbox ran on an nVIDIA graphics processor. When software makes calls to a chipset to produce visuals it uses code specific to that hardware. Xbox 360 runs on an ATI graphics chip meaning that code from last generation games will need to be recompiled or emulated in order to work on the system. Does this mean that consumers will have to chuck their beloved Xbox libraries? Not necessarily. There is a chance that Xbox 360 will have the ability to emulate the old system, though nothing has been announced as of yet.































