Is it possible to turn an X-box 360 into a dial-up, bradband, and b/a/n/g/ wireless server?

Like could I go out and buy an X-box 360, get the wireless adapter, 20GB hard drive too and all the other accesories and put a version of Linux (posibly Ubuntu) and provide internet service to people arround a town of about 1,000. Could Microsoft sue me if I did? Would I be able to get it onto the hard drive in the first place?

I have already checked the specs and it seems that I have enough USB ports for a mouse, keyboard, wireless adapter, and one other thing. I will use a TV for a monitor.

One more thing if I can do it with out getting sued, will Ubuntu work for the dial-up, bradband, and wireless? If not please leave a link to a version of Linux that will work. Also please leave links to additional hardware that I may need to build this server.