Yep. I've built in one myself, It's a great little case.
Xenia is the emulator to go with for 360. It's recommended specs are on the higher end but its minimum specs are quite reasonable. 360 emulation is still quite new though, even on the best hardware you're going to run into problems. But don't let that put you off, playing around with emulators is a lot of fun. You've already got the hardware, it doesn't cost anything to have a go.