I was pretty excited with the December update to the Xbox360 Dashboard that provided some additional codec support but after using it for a while I'm less sure that it's solved my problems.

For a start the big downer is that, unlike with a Media Center, I still can't use the system to view archived DVDs - that means we still have to expose the physical media to scratches if our daughter wants to watch Barbie rather than have her able to stream it from a remote location (or she has to use the Media Center in the living room which does support DVD Library mode).

The other frustrating thing is that some archived content still refuses to play back - though it's encoded with the same codec as content that's fine. It also appears that I need to be logged in to play back content (though this may be a limitation brought on my my current Gamertag not being US) - which means if my daughter is watching something she still gets messages popping up from folks who think it's me logged in.

Here's hoping the next Dashboard update brings some more Media goodness (though I am questioning the value of a noisy and power hungry Xbox360 as a component in our home entertainment setup.... maybe a dedicated Media Center extender would be better).

In the meantime we're supplementing support with TVersity. This transcodes on the fly the content we're having codec issues with (it runs on the Windows Home Server where the content is archived) and is pretty reliable. Again, it currently doesn't support archived DVDs and it's not a native WHS add-in (but there are enhancement requests being considered for both). For Wii users TVersity (like Orb) provide a very good Media Experience using the built in Opera browser to render a Flash user interface - on the Xbox360 TVersity etc are limited to the simple folder hierarchy and text listing.