I thought I’d share a post I came across on XBMC’s forum where it’s revealed that an XBMC developer is working on supporting libretro emulation from within XBMC itself. I imagine this will be a huge amount of exposure for the libretro project if this becomes a reality and finds its way into a future version of XBMC!
http://forum.xbmc.org/showthread.php?tid=146711&pid=1252596#pid1252596
Here’s an early video of this in action: