So, does it transcode to the 360?
I've seen a number of people report "blockiness" or poor quality on the Xbox 360, which is clearly a sign of transcoding (although on a powerful enough machine this may be subtle and difficult to notice). What I don't know is if this is actually the expected behaviour for mkv playback, or if these people are doing something wrong. I don't have an XboX 360 to test it myself. So, if I:
-Perform a clean install of Windows 7
-Install the latest DivX bundle (which includes this preview)
-Connect an XboX 360 as a Media Center Extender
-Download one of the MKV files from the DivX 7 Showcase
-Play that file on the 360 in Extender mode
Will it stream the original video to the 360, or will it transcode on-the-fly?