In the short time between the first usable exploit for Xbox 360 consoles and today, we've already seen a lot of great achievements by people like tmbinc, Cpasjuste, and others. A few hours ago, a new shader exploit using the King Kong game was announced which will allow people to load XeLL and subsequently, any Linux distro without needing a serial connection with a PC.
This patch will modify the King Kong ISO to include a modified shader which will trigger the exploit. Once triggered, the exploit code will automatically eject the King Kong DVD. Just insert Cpasjuste's modified version of the Gentoo minimal LiveCD. Wait for a few seconds and it should boot right into a minimal Gentoo environment. While its only command line mode for now, you should expect a user-friendly distro like Ubuntu to be released after the necessary patches are applied.