Hmmmmmmmm.......maybe it is not worth it after all. I am thinking you need a gvp turbo a500-hd+ expansion with build in Ethernet support, ability to see more than 8 MB of RAM, like say 64 of RAM, have build in to the expansion CPU 50 Mhz CPU, as well as hard drive, hmmmmm....maybe it comes back...we need a better Amiga classic system upgrade all together, something new classic Amiga that meets the demand of the new generation, watching movies, play mp3, browse the internet. Ok, I suppose...I will use my Amiga 500 for what it is good for...games. 
It is just every time I see the interface of the kicstart 1.3...I ache with it's orange color cursor and blue screen, to browse the internet on workbench 1.3 and watch movies on the workbench screen of it....as well as chat online and play mp3 
But I will leave that fetish to the dreams.
I'm sure you could watch HAM6 CDXL video on a stock A500, but you'd still need a CD-ROM, or a hard drive to store the CDXL files.
The CDTV ran CDXL, and that is basically an A500 with a single speed CDROM.
CDXL specs: 160x100, 12fps, mono audio, 4096 colours. (single speed drive)
256x128 12fps, mono audio, 4096 colours (double speed drive).
Really, the big box Amiga's are easier to expand, as is the A1200. But it's certainly possible on the A500.
