Engadget comes back with their second part to making an iPod dock where the Xbox 360 hard drive used to go.
There are many ways this project could be modified. We took an approach that would let us return the box almost to stock condition if needed, but a more permanent mod could be soldering the hard drive connection on the inside of the case instead of using the external connector. With the outside connector gone you could route the dock’s USB cable inside the case. We still need to cut down our three foot dock cable since it only has to be three inches long to reach the port on the back of the box.