Connect xbox to imac

Sometime in the near future, i hope to purchase an imac, a big part of this is to be able to connect an xbox 360 to the imac, but i have 2 questions about it
1. Is there any way of connection the xbox 360 to my imac and allow the imac to act as a screen to play the games on. I first thought i may be able to connect through the mini DVA port but this seems to only be for image output. Is there any decent way of solving this problem? also it is quite important there is no lag so will this be a problem and if so, is there anyway to get around this.
2. Is there any way to connect the xbox to the imac and use it as a bridging device for my wireless network. I have read that there may be any problems but i would really like to be able to access the internet this way for use of xbox live. Is this possibility using my ethernet cable or will i have to shell out for the wireless for the xbox?
If at all possible i would like to keep the price down but obviously maintain functionality over price.
Thanks in advance

Thank you very much, so it seems like my first problem has been solved by the elgato hybrid.
Any ideas on using the imac as a bridging device? anyone had any experience with this?

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