Well I have to tell you guys, I have another 'solution'; (a bit off topic)
- Local home network
- XBOX modded with XBMP installed (
http://www.xboxmediaplayer.de)
- XBOX hooked on local home network
- Installed xbms on SME 5.5 (or 5.6) for making it a streaming server (and very well)
- Playing almost _all_ video/audio formats through XBMP with a _very_ nice gui on my tv
- Hooked my tv on my sound system and all togehter it does this:
OSD (On Screen Display) with various of settings during video playback
- Audio Visualization (using Goom visual effects generator)
- Local/native SHOUTcast recording to the Xbox hard drive
- Local/native support for SHOUTcast & IceCast playlists (.sc & .pls)
- HDTV 720p & 1080i support (multiple resolutions & progressive scan)*
- TV-Guide (w. IMDb) (XMLTV show listings, requires PC w. internet)*
- Command line option available when launch a XBE via shortcut (.cut)
- DivX 5.03 (inc. 5.03 Pro) playback support*
- AVC - Advanced Video Coding (H.264) playback*
- Real - RealAudio/RealVideo playback (Note! older versions only)*
- QuickTime 6.0 video playback (video only & no audio yet)*
- Theora Video (VP3/SVQ3) video playback support*
- Intel Indeo 3.1/3.2 (Indeo3) video playback support*
- Matroska (.mkv) audio/video multimedia container/file format*
- NuppelVideo (.nuv) playback support*
- Autodesk FLI and FLC Animation playback support*
- AAC - Advanced Audio Coding (MPEG-4 audio) support*
- Updated picture library, now also support PNG, TIFF, TGA & PCX
- Support for compressed VobSub subtitles (rar) (Small files only!)*
- Auto-launch Xbox game on insert (inc. enable/disable feature)
- XBMSP - Xbox Media Streaming Protocol (version 1.0.12)*
- Clock/date synchronization from external (NT SNTP) Time Server
- System info under Settings (build date, free space, IP, temperature)
- Ability to choose which categories show up in main menu
- Support for separate local subtitle directory on HDD
- Read support for MP3 ID3v1 and ID3v2 information tags
- Support for MPEG & OGM files larger than 2GB (not OpenDML AVI's)
- Auto clipping/cropping filter (for videos with black letter-boxes)
- De-interlace filter (for interlaced video) implemented*
- Screen saver (black screen) on configurable timer
- Auto-launch other xbe (application) on Audio-CD insert
- Auto-launch other xbe (application) on DVD-movie insert
- Extract IMBd URL & info from .nfo file (if selected in My Videos)
- IMBd improvements (All genres, ratings, Top250, cast overview)
- Integrated updated FFmpeg, XviD, XBFileZilla and MPlayer code
Next to XBMP I run Gentoo distro on the xbox for surfing the web while laying on the couch...
I know of at least 1 other 'member' of this community doing the same thing succesfully.
Need any help? e-mail me

Regards,
guestHH