If MS is going to Power PC processors, that means they can get out from under all the vulnerabilities of the x86 processor that have so annoyingly echoed up through the Microsoft OS for so long, does it not?
Yes, Microsoft can get their PowerPC chips built to spec. Microsoft also bought Connectix recently, so they own the "Virtual PC" x86 emulator which already works on PowerPC. I think they'll use that emulator to run first-generation Xbox games - but they could also use it to boot Windows on the Xbox 360.