IIRC, the standard AV cable you get with an XBox simply has phono plugs at one end (1 for composite video, & 2 for stereo audio), which are then either plugged straight into the appropriate phono sockets on a TV etc., or are plugged into a SCART adapter to enable you to then connect it to a TV's SCART socket.
The XBox "Advanced SCART" cable gives more than just a digital audio optical output. It has a proper SCART plug at one end, which carries RGB video (as well as composite video & stereo audio) - and also has the switching pin connected, so that when you turn on the XBox, the TV changes to the correct AV channel.
The normal lead doesn't have the RGB, or the switching ability.
For the STB to be able to pass signals from its "VCR" SCART out through its "TV" SCART, the device connected to it (e.g. the XBox) must be connected via a proper SCART which has this switching ability.
As Tristan said in the thread I linked to earlier:
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Originally Posted by Tristan
It happens like this: if the NTL box detects a switching signal and an incoming picture on the VCR scart, it will send the picture straight through the TV scart to the display. It's even decent enough to pass through RGB signals.
With CR3 (I'm not sure about other software versions), switching the STB to standby and back again will cause the STB to 'take charge' again and send the digital picture to the TV (and probably to the VCR too, as scarts allow simultaneous two-way traffic). You then have to set it to standby again to watch the vided/DVD/game/whatever.
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If that doesn't work, then the other option is as Neil suggested: a VGA adapter for the XBox to enable you to connect it directly to the PC's monitor.