XBox 360 is a streaming pile of crap

So I download a movie (of unknown origin) to my computer and wanted to watch it on my big screen TV. The movie was in XviD format, which would soon become an issue. So I hook up my Vista Media center to my 360 and it all works fine. All my WMV files play, but little else does. So I try to figure out what is going on, and it turns out that the 360 doesn't support almost any codecs at all. So I look for some solutions to hack together a way to stream media to the 360, including Transcode 360 and TVersity, neither of which were going to work or be easy to set up. So I figured it would be quicker to just convert the files.

So I ended up using VLC to transcode them to WMV using a batch script. Quick(ish) and easy, however it was far from an ideal solution. Microsoft needs to get off their ass and implement some other codecs, namely XviD and DivX. If it wants to compete with the Apple TV in the living room, this is a must-have feature.

Does anyone have a better solution to stream these types of files to a 360 from a Vista machine?