see if any articles remain out there on the web that confirm or deny the theory that X-box was birthed from Dreamcast.

The Xbox wasn't birthed from the Dreamcast. Microsoft were big fans of Sega and the Dreamcast. I'll go and find some things to prove their relationship with Sega.

Sega and Microsoft team up:
http://www.microsoft.com/presspass/press/2001/mar01/03-30segapr.mspx

Microsoft getting Sega to exclusively bring Sega games onto the roster last gen.
http://www.microsoft.com/presspass/press/2001/oct01/10-11segatopgamespr.mspx

IGN talking about the original Xbox controller and how it resembles the dreamcast controller.
http://xbox.ign.com/articles/089/089721p1.html

Other gamers on another website talking about how Microsoft buying Sega would work for gamers.
http://channel9.msdn.com/forums/Coffeehouse/139852-Portable-Gaming-How-I-think-Microsoft-could-enter-and-win/

Those articles prove what again?

The first article merely shows Sega pledging it's support for the xbox, something they have done for all the other consoles as well.

The second article speaking of exclusive content: Sega has released exclusive content on all systems; in fact, I would go as far as to say that their two best games this generation, Valkyria Chronicles and Yakuza 3 are Sony exclusives, plus last generation Sonic Adventure DX and Sonic Adventure 2: Battle were exclusive to the gamecube, as well as Skies of Arcadia being ported to both gamecube and ps2 (not to xbox); these were three of their bigger titles on the dreamcast.

The third; Imitation of one company's ideas says nothing about being a fan or not. Companies copy what they believe is successful; Sony copied rumble, motion control (six-axis), analog, and probably other things I'm forgetting, does that imply they are fans of Nintendo...not really. Microsoft and Nintendo copied backward compatability from Sony, are they fans of Sony?

The fourth: Sega teaming up with anybody would benefit gamers; in fact, them teaming up with Sony or Nintendo would be an even greater benefit since those two have much more diverse first party offerings to begin with; with Sega they would be offering pretty much double. Imagine being able to buy a console and knowing it would easily have twice the exclusive content of any of the other consolers merely off of their first party support. Lots of people would kill to have Mario and Sonic be side by side all the time.

The only correlation I see between Microsoft and Sega is that the dreamcast ran on Windows CE (Console Edition) in order to enable software developers to be more familiar with developing for the system, making it easier to develop for and easier to port pc titles to, similar to how Microsoft does with their consoles. Microsoft therefore got their first experience in the console world with Sega, so it makes perfect sense they would imitate the source they were most familar with. If anything, Sega was pissed at Microsoft for them never revealing they had intentions to enter the console market until the dreamcast was a year or so into it's lifecycle, which placed even more pressure on Sega due to the imminent release of three consoles. If Microsoft was such a fan of Sega why would they have made up their mind to enter the console market knowing it would be yet another factor to contribute to Sega's death? The fact that people continue to say that Microsoft is the new Sega is an absolute insult to somebody like me who considers themself to be a Sega fan first and foremost.

Oh, by the way, what are these double standards you speak of? Why would you presume that I don't know of the things Sony has done just because I disapprove of people saying Microsoft is a fan of Sega. I would be offended if anybody claimed Sony or Nintendo was a fan of Sega as well.

Only two words can describe the awesomeness of Sega: Segata Sanshiro

Sega should license the best of the 360 and PS3 controllers, WiiMote, XBox Live, and Blu-Ray with the ability to run all three consoles' games calling it the Sega HD Console and I would throw all my consoles away and buy the Sega HD Console.

 With amazing commercials like that, how did Sega ever fail!!! Even if I wasn't a Sega fan and they produced the worst console ever I would buy one just for that commercial. They should make a new game based off of that character and it should be a launch title for their new console.

@S.T.A.G.E. Sony did work with Sega in the past, with the Sega CD. Also, Sony had approached Sega with the idea of teaming up on a console, Sega refused.

If Microsoft is such a big fan of Sega, why did they allow their negotiations to buy Sega fall out, letting Sammy take the deal instead?

Microsoft hired out of Sega after the fall of the dreamcast in order to have somebody with experience, particularly Moore since he was head of Sega's North American operations. Coincidentally, Moore also played a key part in the discontinuation of the Dreamcast (could that have been a payoff from Microsoft in order to eliminate more of their competition before entering the market?).

Also, I make no denial of the fact that Sony has copied others. It's not a double standard, the same standard; it's just that Microsoft has violated that standard on a whole other level, the same goes for Nintendo in their exclusive contracts during the NES era;

Also, if imitation is flattery, why are you so pissed off at Sony? According to you they're the biggest fans of Microsoft out there right now, you should love them.

I like the idea of it but not now. They are starting to do great again.
If they are planning on making console again, they should do it when they are ready.