I heard about the update, and thought it was about time. Now only to find out you still can't stream divx..WTF!?!? Who is the genius that thought this one up... In my house discs are obsolete, and this is just a waste of time. This is the main reason I never used the 360 for any kind of video, and probably never will...
Microsoft is so behind the ball with the codecs. We should be able to stream 1080p mkv's by now. Needless to say this whole xvid update was a bit...pointless?
PS- evans112628, how are you streaming the divx from your pc? One of those on the fly converters?
Also Bubbalynch, ever heard of extracting the file?