XBConnect allows you to use your computer as a "tunnel" so you can play XBox and PSP games on the internet. For XBox, it uses the "System Link Games" screen to fool it into thinking that it is on a LAN. If the game supports the use of headsets, they can also be used with XBConnect.
If you take a look at XBC's forums, you'll notice that I have replied to a few questions there. 
At Matt Whitlock's request, an article about XBC is forthcoming. The article may include a picture of his bloody remains. 
You're on Yog! You and me, Halo, and a whole lot of blowing each other up! Let's coordinate a time to duel.
We can post our deathmatch resuts for Halo in the forums here so the whole community can celebrate my victory!
http://techlore.com/article/14302/
I also have use this. The only problem I have is no downloadable content on Xbox 1.