For those unfamiliar with TVersity, it's the app you run on your PC that lets you transcode just about any format into a format your Xbox 360 can understand. Essentially, this means you can watch DivX, XviD, and other media files on your consoles on the fly. Good news, because now it's available for the PS3 and the Wii.
However, since the Wii and PS3 have limited format support already, TVersity transcodes into flash video (FLV) format in order to play back on these two consoles. But, you can also play back YouTube, Yahoo, and Google Video on your consoles now with TVersity. Now your grandmas can record and play back internet videos. The cycle is complete.
Product Page [TVersity]