I don't know if you guys remember, but there was a rumored list of fall update items that came out a couple of months ago. One of the items then looked to be divx/xvid support. Especially with the PS3 adding it in, I think it is a very real possibility. Certainly it has to be one of the most requested features from their fans and is one of the things that really is holding it back. I just hope they include the support in the Media Center extender and not just in the videos section. It would be far more useful to me that way.