Well you guys are fogetting about something i think. One one side, not only would we have to add codecs to the 360 media player, but for example, we could not just transfer Mp3 to our 360 HD because the media player only detects files that are in microsofts proprietary container format... this is a waste of time becuase we would have to convert all our mp3s to wma and put them in their strange xbox360 container thingy, then modify the media file at all that crap... pain in the @$$...
i used to have hd video from xbox live on my 360 hd, but unfortunatly i deleted the file so i have not been able to conduct an analysis of how the 360 dealt with HD video files... but i have a feeling that they were also on a proprietary container and format... i think we all want to avoid having to modify the files before transferring them to 360...
the solution is clearly a new media player built from scratch or a port... maybe port mplayer or vlc media player.... i have been looking into it, but im really starting from zero so i get discouraged thinking someone will release something soon and i will have worked for nothing... but i may still get into it just to learn....
the 360 audio player also is TERRIBLE!!! i have been wondering why ms made such a terrible player... every button is so huge, playlist and song management is terrible... so we really would need something new... codecs really wont do...