Remote... Console?

[enigmacipher]

I have always though that VNC servers are very slow, and I thought of a decent idea, but I have no idea if it was possible. Could I use a computer to capture, digitize, and broadcast sound and video from my xbox360 to Pandora over wireless network, while sending controls through the network to the 'server' and then by USB to my 360?

That way I could use an (older) P4 computer to play 360 arcade and xbox originals plus whatever game I have in the drive.

I wonder:
would the lag be too high for playability?
Is it possible to "simulate" a controller?
Is the coding even possible?
Is a P4 @ 2.66 + 1 GB RAM powerful enough to digitize, encode and broadcast all while simulating a controller?

 

[Chip]

Links: 1 2

 

[Tobriand]

And, on the basis of Links 1 and 2, thread locked