In what is one of the best case mods of the original Xbox that I've ever seen, user ghostavel over at Xbox-Scene has created a DVD-less, vertically-oriented, hdd-equipped, dead sexy version of the normally bulky console.
This master modder has completely done away with the DVD drive, instead adding an 80GB hard drive. All of the visual design was drawn in AutoCAD, and the plexiglass case was then cut by laser so, as ghostavel says, "everything is precise." He can even use interchangeable faceplates!
He's even gone so far as to custom-produce a miniature power supply for the unit, so I'd imagine the removal of the optical drive's power-hungry mechanism was quite helpful there.
The final product is almost ready, but even now, in its unfinished state, the thing looks awesome.

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Updated June 4th, 2008
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*jaw entirely falls off*
Microsoft should definitely hire this guy.