The xbox 360 has ridiculous graphics equivalent to that on a pc for games like bioshock, gears of war, etc.... therefore if that can run those games like a charm, couldnt it technically handle an OS like windows xp well? This question just popped in my head, because i know you can do that with a normal xbox, (put an OS on it), but could you do that for a 360, and then wouldnt it 'techincally' be a good computer?

Yes the xbox 360 would easily handle windows xp, but making it happen is a whole diff ball game. You would have to find an xbox 360 mod chip and hard-wire the mod to your xbox 360 to be able to install windows on it. It can be a very technical thing to do.

would it be a good computer? OR is it just made to run a single game and look good?

It's basicly the same as a computer. it would make a solid pc but it would be 3 generations back from a gaming pc.

All game systems are computers, they're just wired a bit differently to focus on gaming. As was already said, the trouble would be getting over microsoft's built-in stuff.

Yes I agree with OldManClayton's opinion.