The Xbox 360 makes for a great high definition playback device. It's able to decode full-screen HD content pretty easily, and Microsoft is making plenty of WMV content available for it over the Xbox Live marketplace.
However, if your Xbox is under the TV and your PC is upstairs, it's quite possible that you'd like to stream content from the PC to the TV. The problem is, the vast majority of content that's on your machine is probably DivX rather than WMV, right? So what do you do?
Well if you're an enterprising video encoding enthusiast, you come up with a way to convert DivX to WMV on the fly, then
stream it across. Using the Windows Media Encoder for Windows XP, 'Casey' has been able to come up with an automated solution that allows the 360 to grab movies from a plug-in in Windows Media Center.
The solution is complex, but works pretty slickly. There's a video of the whole thing in action which is worth the quick download if you're interested in this. It's a great example of what can be done with a bunch of good APIs and some knowledge not even of programming, but of system automation.
Check out the full guide over here
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