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[darkdonno]

I suggest only running XBMC at 720P

How big is ur 'tv/projector/viewing space'?

[Alex Atkin UK]

Indeed, running at 1080i is also going to take a lot more RAM and CPU power to render stuff which the X-Box hardly has an abundence of.  It cant really utilise 720p properly never mind 1080i.  The only reason I use 720p myself is its useful to fit all the UI on comfortably, 1080i on the other hand seems overkill although I guess it depends how well your TV rescales 720p where having native 1080i output might be better quality.

[Alex Atkin UK]

Oh man, I wish I could upgrade my X-Box to those specs as id LOVE to be able to use it to play 720p content smoothly.  

Im still hoping MS will see the light and allow the 360 to stream more video formats without transcoding and hopefully without MCE (although thats less important, id be willing to switch to MCE to get the support).  Then again, I expect I will end up on Vista eventually which rumour has it will also work for video streaming to the 360.

Still the XBMC has proved amazing for that little 733Mhz CPU.  I have a Linux box also with a PIII 733Mhz and it doesnt come close to the same playback using mplayer, in fact its a pain in the arse to get it to work full stop.

[AOforever1]

I'd also like to bring this up while we're at it.
XBMC does not currently support HD Videos completely. Meaning the H.264 with highbit rates.

[Caldor]

AOforever1 try decoding hi profile AVC in true HD 1920x1080P with a dual core AMD and accelerated with an ati x1900xtx and see how far ya get

Regardless of the hardware in the xbox, the point remains that upscaling standard defintion stuff is done very well in XBMC and it would be nice to have a skin with fonts that read well in the 1080i mode.