I may have found a fairly good solution to streaming DVD's from the server to the Xbox. I'm trying out a free program called SimpleDivX. I've done some tests and it looks promising. The only glitch I've found is that there is no sound when sampling the sound at 48kHz. I know a lot of sound cards can't handle this and must have the sound converted to 44.1kHz. I'm recreating the avi file now at the lower sample and we'll see if Xbox can play it.
Or I could just find out what the Xbox can handle and build the file around it.
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