Any new stories about the X box playing DC cames out of the box ? I looked around but did not see anything about it.

When rumors started flying about a Sega/Microsoft meeting, it was speculated that Microsoft might be planning on including a DC chip in their Xbox that would allow Dreamcast software to be played. Microsoft has denied any such thing. Instead, I believe, the meeting between the two companies was to discuss Sega producing software for multiple platforms. So, it doesn't appear as if the Xbox running the DC games rumor is accurate.

It would be great if true.

The only thing I've heard is the inclusion of licensed Bleemcast software, being that the X-Box will be running a modified windows platform. Otherwise, that's it.

It's highly unlikely, but anything is possible now that Sega is out of the console business and an official third part developer. But I think the X Box is too far along in development (infact according to MS it's done) for it to be a possibility.