I used to have an 88 S10 and planned on mounting a screen in it, but the truck was no good anyway.
Anyway, while still in the planning stages, I found that where the head unit was nstalled at the factory, that "plate" would be perfect to accept a sreen. Some modding, and re-positining of the stereo would be in order, but there is more than adequate room back there (esp if you have no dash vents, like I did). Although, if you were to custom fabricate your own console, the screen may be easier to read in the daylight, not sure how much light shines on that part of the dash during the day, but in the trucks, it's alot.
As for the screen, I'd try and find one that accepted only video input (RCA, sometimes called composite), as the XBOX already comes with all hardware to use these types of screens. Don't bother buying one with VGA or touchscreen capabilities, cause you'll just be throwing your money away.
Check digitalWW for the screen, he has good prices and lurs around these forums quite alot. People seem to do good buisness with him.
Hopes this gives you a good starting point.