We cried over a lack of native DivX support for Windows Media Extenders before Christmas but Santa must have read our post. Apparently we were good little HD boys and girls because Santa (in the form of Xbox.com forums) just gave us a little gift: a free conversion application!
Videora's Xbox 360 Conversion software takes AVI, DivX, XviD, and QuickTime files and converts them to your choice of WMV, MPEG-1 or MPEG-2 format. We just grabbed a copy from Videora's website to give this a try, so there's more to follow. We're really intrigued by the $30 companion software that allows for "ITvCasting"; it appears that you can use RSS to subscribe to videos in WMV format and have them automatically downloaded to your WMCE PC for streaming on the 360. Thanks Santa!