Dutch site, Xlife, has reported
that at a MS press party in Rotterdam the MS folks have a projected called Mission 360 which will bring Divx and Xvid to the Xbox 360 in a form of a patch. I recall someone from MS, I think Allard, saying that they won't support those codecs because they are tied to piracy. If the story turns out to be true, then I'm really happy to see Microsoft change their minds. Transcode 360
's a nice little project but to be able to do it natively would be a lot better.