Definitely part it out. The front and rear wheels will probably get you okay money as long as they're clean. Throw in the tires for free. The drivetrain is what, 9-speed? If it's in good shape, sell as many parts of it separately as possible. Cranks - if they're in good shape with good rings, you could get $50 with the right buyer. Front derailleurs have changed little over the years, but they're cheap to start with. Rear derailleur - there have been a lot of cosmetic changes, and a few functional ones, so you won't get much for it.

I'll disagree with Maelstrom on old XT being equivalent to current low-end Shimano. I'd take 10 year old unused XT over current Deore any day. Hell, I'd take 15 year old Suntour XC-Pro over current Deore. I'm not too familiar with the Magura brakes, so I can't help you there. It's possible a novice trials rider could use them. The frame is what will drag the value of the bike down. Throw it on e-bay by itself and see what you can get.