I use Playback to stream from my Mac to Xbox 360 (new slim).
Xbox required a free software update to play mp4/ aac media.
Playback works flawlessly for what it does do.
All of my movies are encoded by Handbrake in Normal, (h264, 5.1 DD w/ m4v file extension.
All my itunes music streams AAC or mp3, unless it is DRM protected content like digital Copy movies.
All of my iphoto albums show up as well.
The Xbox does seem to cache things, so an update to cover art for a movie sometimes takes a minute to show up, sometimes a week.
The Xbox will not wake up my mac (probably because I do not have an Airport router).
I tried to get the Xbox to play streaming radio from itunes and that will not work. Gives me an incompatiable file format, since its a .pls extension.
I stream hardwired on a 10/100 network and there are NO hiccups playing the file. Picture quality seems to be near-DVD on a 50" plasma.
I send the sound to a soundbar via optical out and am getting only 2.0 DD to bar. I don't know if I am having encoding problems or if it is the optical out on the xbox.
Also, the volume seemed low on the movies, but simply going into iTunes and bumping up the volume enhancement for the movie files under Get Info/options fixed it.
Playback doesn't use much memory or cpu time. Can easily do any other work while streaming on a 2008 iMac w/ 4gig ram. Don't even know its working in the background.
Thats all I can think of for now...