No word yet on whether or not this works with DivX HD files, but it is possible to stream various non-WMV files to your Xbox 360, by letting Windows Media Encoder convert on the fly. It's a little bit involved, but once you have everything set up you'll be able to browse and control movies directly from the 360.

Any HDBeat readers want to give it a shot with some 720p files and let us know how it goes?

[Via 360insider.net]

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Stream DivX & Xvid to your Xbox 360: No conversion necessary