Yes, If I understand what you're asking. I won't be playing games on
the Xbox at all. The only thing I even need a screen for is to see
which soundtrack I'm selecting on the Xbox, you see? That's why I'm
looking at a screen so small: if I'm not playing games, why get a
screen twice as big for twice as much? Besides the smaller the screen,
the less potential it has to be noticed...

Is all your music wav format? So you'll be using the base player on an
unmodded xbox to do it? If you can get it all to fit on ~7 gigs, then more
power to you!