I did my XB360 update last night after reading about it now plays MPEG4 and H.264 video. I took a video I encoded for my iPod, put it on a memory stick, stuck it into my XB360, and it plays! Now, what's the best way of getting it to play from an iTunes folder on my PC server? If this works - forget about AppleTV... (though, it won't play Apple protected content. Maybe Apple will let XB360 owners play it?).