If anyone is interested, I upgraded this project to work in Xna 4.0 in windows and on the Xbox 360.
You can check out the upgraded project here: ( http://www.lowpoly3d.net/downloads/Xbox360MD5Demo.rar
Unfortunately it is just over the allowed size to attach it here, so just copy and paste the link above in your browser.
I am still working on adding more features and will post any changes I make in the future.
Hope it works for everyone and please let me know of any problems.