Just got my iPod hooked up to the 360 using the USB cable and wanted to mention how good the integration is! It just scans the iPod for audio files and organises them in a similar way to the iPod interface (Artists / Albums / Songs etc). It works really well especially with the 360 remote if you have one.
Also there's an optional free download on the Xbox Live Marketplace to allow you to play AAC / M4A files through it - without this you can only play MP3's or WAV's for some reason.
More information here:
http://forums.xbox-scene.com/lofiversion/index.php/t465671.html
I don't think you can play music from the iTunes store with it because of the DRM, but it seems to play everything else really well!
Also there's an optional free download on the Xbox Live Marketplace to allow you to play AAC / M4A files through it - without this you can only play MP3's or WAV's for some reason.
More information here:
http://forums.xbox-scene.com/lofiversion/index.php/t465671.html
I don't think you can play music from the iTunes store with it because of the DRM, but it seems to play everything else really well!