I have the older X-BOX (not the 360) modded with XBMC. My Harmony 880 has been controlling everything fine until I recently pulled out my separate DVD player with my plan being to play DVDs via my X-BOX. (I've never tried to use the X-BOX to play DVDs until recently, but it worked great using XBMC to play stuff over the LAN from my wireless network)
What I've just discovered is that unless I boot the X-BOX to the original M$ console, none of the DVD controls work (Pause/Select/FFWD &c) - either on the Harmony, or on the original X-BOX remote. Play seems to work OK, but that's about it. (I think my issue might be more of a general XBMC issue, but since my goal is to have my Harmony control XBMC to play DVD's I'm posting here for any general help I can get!) I don't have any of the XBOX Power On/Off mods so I'm not expecting that to work - I'm just after the basic DVD transport functionality.
I've just read a thread about someone else setting up their XBOX on the Harmony as a Media Center Extender and reporting that all worked fine (apart from some power issues), and I was going to explore that as an option (I'm not sure if that's just a Harmony device setting or a hardware extension that I need), but the Logitech site is down for maintenance now so I can't explore any further at the moment.