A couple of hours ago, Spiff a XBMC dev added full rarsupport for media to XBMC CVS
What does this mean?
Well, let me put it this way:
If you were to rip a DVD to say a 733Mb Xvid, and rar it the "warez style" (multiple archives) you no longer have to unpack it!
Note: Warez style = STORED, not compressed rar's. If the little warez kid used compression, it will have to be unpacked, but this can also be done on the fly, it just needs tempspace (as much as the file you want to watch, and a bit of patience). Initial support unpacks to Z, so files can't be too big IF they are Compressed and not Stored.
Yes, it works for dvdimages also, and same restrictions apply, if dvdimage didnt work before, it wont work better now.
Good times, good times!