RUMOR #2: The Xbox 360 won't be backward compatible after all.
Source: British industry news site Gamesindustry.biz.
The official story: See below.
What we heard: Microsoft carefully parsed its words about the Xbox 360's backward compatibility by saying it will be "backward-compatible with top-selling Xbox games." So when Gamesindustry.biz published an article revealing the console's radically different hardware couldn't support current-gen Xbox games, accusation perfidy in Redmond began to fly. "The solution Microsoft has reached is apparently to recompile current-gen Xbox games so that they can be played on the 360," says G'biz. "First on the list, it says, are the best-selling Halo titles." However, Xbox owners were the only ones freaking out. The usually recalcitrant Microsoft bypassed its external public relations company, telling GameSpot directly that, "Our goal is to have every Xbox game work on Xbox 360. You will NOT need to purchase a new 'version.' Your original games will work on Xbox 360."
Bogus or not bogus?: Bogus.