I once heard that the New Experience Update (NX) includes full file and media management onto the Xbox 360 Dashboard software. Is this true and why would I need the Xplorer software anymore? I have an unmodded (original) Xbox, is there a major limitation with the file management I can do on it?
Xbox doesn't support copying data to and from xbox harddisk to a pc. You can use Homegroup or legacy sharing options in windows to play media content from your pc though.
If you need to copy something to xbox, via usb, you will need to use Xplorer software. But, that is not a good practice, as MS reserves the rights to ban your console, if they found traces of any pirated media content. If you have paid content, you can download the same over xbox directly, instead of copying using Xplorer.