Sygate PF & modded xbox

I've got SPF running on WinXP with a D-Link 604 router & an ethernet modem. I've set my xbox for a static IP. I usually use it for XBox Media Center. I set that to run DHCP. Everything ran ok until I installed SPF. With XBMC set to DHCP, I can access my music shares & XBMC will access the weather & IMDB off the internet, but it won't access my video shares. I went into SPF & created an advanced rule to allow traffic on all ports & set the remote host to the subnet IP address & subnet mask of the xbox. Everything works ok now, but does this defeat the purpose of the firewall?

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