OK this is quite complicated but there are two methods available for you to watch videos via your Xbox 360.

You can download available video from the Xbox Live Marketplace, some of this content is free whilst other videos must be paid for, Microsoft themselves deem what is acceptable. (Big Brother is watching!)

However if you don’t want what Xbox Live Marketplace has to offer then you may be interested in the second method of viewing video which is by streaming in content from your PC by using the Xbox 360 Media Center Extender.

The Media Center Extender for Xbox is a packaged software product from Microsoft that runs like an Xbox game it allows you to be in control of what videos you see although there are restrictions regarding what kind of format you can play.

Formats which are compatible using the Media Center Extender are:

Microsoft Windows Media Video (WMV) 7, 8, & 9

Maximum resolution of 1920×1080 (1080p) at 30 frames per second.

Windows Media Audio Standard or Windows Media Audio Pro audio

WMV content may be Windows Media DRM-protected Bitrates up to 8 Mbps.

WMV Image 1 & 2

Maximum resolution of 800×600.

MPEG-1

MPEG-1 layer I and II audio

MPEG-2, DVR-MS

Maximum resolution of 1920×1080 (1080i).

MPEG-1 layer I and II or AC-3 audio

Bitrates up to 19.2 Mbps.

The Xbox does not support AVI, DIVX, XVID, QUICKTIME or H264, however you can convert these formats so they will play by using the Videora Xbox 360 Converter.

Remember the only video that the Xbox 360 can play from it;s hard drive is that which was obtained from Xbox Live Marketplace or preloaded onto the Xbox.