Microsoft’s Xbox 360 dashboard update has sneaked in something extra: the hoped-for addition of DivX playback functionality.
The Xbox Team’s official blog includes an AVI file support FAQ, which says the console now “supports files encoded using MPEG-4 Part 2, Simple and Advanced Simple Profile”, which the team adds are “often referred to as Xvid or DivX video files”.
Another FAQ on the web page, entitled ‘What exactly does the Xbox 360 support for AVI?’, also mentions support for .divx file extensions.
However, the site warns that while some files authored for DivX devices may contain additional functions, such as menus or subtitles, the console won't support these. It also states that, in some cases, the console may not even be able to play the file at all.
The Xbox 360 will only support content encoded with DivX version 5.0 or later.
I've just tried it, i had to download some new media playback content, and yup it works, i used a normal dvdr+rw disc and plays fine, so i assume it will work with other types of dvd media and also memory sticks
Gorfinkle
Just tried it with a USB memory stck, it works just fine
If you have "Disc Enabled" on your ipod, you can drag and drop and divx movie and play that as well
