First off, Why would one attempt to use hot swapping to install anything onto a hard drive?
Hot swapping is the act of switching hard drives while they are "hot" or have power going though them.
For an Xbox, which is unlocked when ever you power on the Xbox via a key saved to the Bio, this would allow you to actively access the file system of the Xbox hard drive with a simple file manager.
This seems like an unnecessary action for installing XBMC on a hard drive, when you could use a file manager that would have been on you Xbox upon modding.
It is very unrecommended that you attempt to hot swap a hard drive for anything, let alone the instillation of XBMC.
So to answer the question, Yes you can. But there are safer and more efficient ways of doing it.
Jailbreaking allows you to install 3rd pary programmes such as XBMC. XBMC is a media centre with 100's of apps to add extra functionality.
XBMC was created in 2003.
Not yet. There is Netflix for XBMC but not for the Xbox version. You have to find a way to get XBMC Eden on your Xbox (Not Original XBMC) The best you can do for now is use the IceFilms plugin for XBMC. And XBMC can be found at the link below.
Yes, XBMC is just a way to organise and watch your content. Whether you obtain that content legally or illegally is down to you the user.
No
You can go online and watch the videos on Youtube that are explaining very well on how fix buffering on XBMC TV box.
HOTSWAPPING
It allows you to turn in sexBOT and have sex while a tarantula is crawling up your but.
First of all, you have to have a modded xbox console. Then you need to copy the Halo 2 game to the hard drive, itself and download the Yelo Trainer. This is ran by XBMC (Xbox Media Center).
You dont - You will need the install original disks
You cannot install a game using a .rar file or any type of extraction program. However, you might have a .iso file, which is an disk image archive. You can mount this using a .iso mounter, such as Magic Iso. Then it will act as if you have the actual install disk in your computer and you can open it an install it.
by using bolts.