VLC HowTo/Play on Xbox
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To play on XBox and XBox360 the file you copy to it needs to be of the correct format. This format is summarized below:
Codec Information
Video Codec WMV2
Audio Codec WMA
Container ASF
Size
Batch file
The batch file can look like that on Windows c:\vlc\vlc -vvv %1 :sout=#transcode{vcodec=WMV2,vb=1500,scale=1,acodec=wma,ab=96,channels=2}:duplicate{dst=std{access=file,mux=asf,dst=%1.wmv}}
http://happybeggar.com/vlcwmv.bat
http://happybeggar.com/index.php?option=com_content&task=view&id=63&Itemid=2
VLC360
If you have your computer connected at the same time, you can use VLC360 to play directly your Computer files on your Xbox 360