Okay, sorry to bother you, but I give up. I've tried so many programs and codecs that i've prob. just made a bigger mess of things... *sigh*
I finally got an iso to work with vlc360, so i'm surprisingly happy about that. The main reason I'd use vlc360, however, is to watch avi, divx, xvid, etc. (dunno if there is a diff.) I've tried two different avi files and they both have the same problem. They both work perfectly fine when I watch them on my laptop, but when I try them on the 360 it says, "Files needed to display video are not installed or not working correctly. Please restart Windows Media Center or restart the computer."
And believe me, I DID restart media center and my computer multiple times. I don't know what there is left for me to try (not that I'm an expert or anything) but to ask what the usual problem is for this kind of error message.
This is the third time this year I've sat down and tried to figure out how to watch divx on my 360 and I'm the closest I've ever been. Please help me!