Arduino and X10 - Home Automation

I want to interface my arduino with an X10 Switch Module . Although I do not want to automate my whole house I want to automate my room. I had the idea to have my lights dim when I start an XBOX 360 game and slowly turn back on when I turn the game off. Since have the XBOX 360 Universal Remote I can do this with infrared. I was thinking of programming one of the buttons on the remote and having the arduino pick up the signal via infrared. The problem is then going from arduino to dimming my lights on and off. I dont want to do any wiring, just replacing the one switch with the X10 Switch Module. What are your guys/gals thoughts. Eventually it will also close the blinds as well, open them when the game/movie is done.

Here is a possible X10 deployment