The Xbox 360 hasn't been cracked per se, but the scene has made some pretty good progress since the first firmware hacks were released earlier in the year, the latest of which is the X360. Developed by Team Xecuter (think of them as the elder statesman of the Xbox scene), the X360 allows users to connect the Xbox 360's hard drive and DVD drive (the HITACHI-LG GDR-3120L drive only, right now) to a PC using a USB 2.0 connection. More importantly, it permits dangerously easily DVD drive firmware flashing since you no longer have to mess around with SATA connections. Of course, you wouldn't be flashing the DVD drive to play backups or anything like that. That'd be silly and immoral.
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