This article will show you how to stream video (DivX, XviD etc.) to an Xbox 360 console with having to encode it to WMV first. You also do not need a Windows Media Center PC for this guide.
Introduction & Requirements
TVersity - Download TVersity and read the installation instructions from this article.
FFDShow - Download and install FFDShow immediately (the version in the link)
Windows Media Player 11 - You just have the latest version of Windows Media Player installed
You obviously need an Xbox 360 console and a relatively fast PC. TVersity will transcode to WMV on-the-fly and then stream to your Xbox 360. In order to stream, you must have a home network, either wired of WiFi. If WiFi, the faster the better but a 54Mbps Wireless G network is recommended (or better). It is vital that you have Windows Media Player 11 installed and that you install either FFDShow or a codec pack (or specific codecs one by one) so that TVersity can properly transcode to WMV. In this guide, I will be using a Wireless network and the steps to setup a wireless network connection on an Xbox 360 are available.
Before you begin, install FFDShow and install Windows Media Player 11. That brings us to TVersity installation.
Installing Tversity
Run the TVersity installer. Click Next and then click I Agree for the license terms. TVersity will then already select an appropriate destination folder so click Install.
After files are copied to your computer, the installer will attempt to run the Media Server. If this attempt fails it will ask you to reboot your computer, in which case the Media Server will automatically started on boot.
After it is finished installed (and you rebooted if you have to), Run TVersity from the Desktop shortcut.