TVersity has released a patch enabling on-the-fly WMV transcoding for efficient-minded users seeking to stream video content from their PCs to Xbox 360. While incomplete, the patch previews the sort of functionality the final version will offer, including the ability to upscale videos to higher resolutions.
Our recent how-to guide highlighted the tediousness of the current transcoding method. We look to TVersity to render this old process obsolete. Try it out (extract to TVersity's Media Server folder) and lend your feedback.