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This may be a bit softwarey for our tastes, but it is a definite need-to-know for any Xbox 360 owners. Previously you had to jump through hoops to just stream an alternatively compressed movie through the 360, even then it required a PC running MCE. Now there is a MCE Video Encoder that will covert those other video types—like DivX and XviD—on the fly for streaming through the 360.

Easy DivX to Xbox 360 Streaming with MCE Video Encoder [eHomeUpgrade]