The photon spectrum in the inclusive electromagnetic radiative decays of the B meson, B→Xsγ plus B→Xdγ, is studied using a data sample of (382.8±4.2)×106Υ(4S)→BB ̄ decays collected by the BABAR experiment at SLAC. The spectrum is used to extract the branching fraction B(B→Xsγ)=(3.21±0.33)×10-4 for Eγ>1.8GeV and the direct CP asymmetry ACP(B→Xs+dγ)=0.057±0.063. The effects of detector resolution and Doppler smearing are unfolded to measure the photon energy spectrum in the B meson rest frame.