DivX and XviD support FINALLY for Xbox 360!

Transcode 360 v1.0 Beta - Runtime (you might remember him as the co-founder of XboxMediaCenter) has created Transcode 360, a new tool for Xbox 360 and Windows MediaCenter he released today:

Designed for Windows XP Media Center Edition 2005 and the Xbox 360, Transcode 360 aims to broaden the support for a wide range of video media including DivX and XviD. - www.runtime360.com

The underlying mechanism for transcoding and streaming is much the same as /mceDivX360 however the user-interface is more tightly integrated with Windows Media Center, and generally more robust and easy to use.

The installation is pretty straightforward, it's all automated. If you run into any problems have a quick read through the included manual, the sections on optimization and troubleshooting are well worth reading.

The software runs in the background as an NT service, and with a few tweaks you can even shift the burden of transcoding to a more powerful computer on your home network. Looking forward we have plans to replace Windows Media Encoder with an open-source transcoder that will be a) less CPU intensive b) more compatible with an even wider range of codecs.

The project will be open-sourced under the GPL license once Subversion hosting has been provisioned.