How to play movies on X-box?

when ever I try to play movies from usb drive attached to xbox , it asks me to sign in so it can update the media software, I do so but nought happens same message appears again. Am suppose get online after press ok for update, and what if I dont have the sources to go online, wont I be capable of play videos on it.(avi formats)

Answers:    Did the 360 download any new updates when it prompted you to do so? I realize you are saying it still won't play but I'm curious if it attempted to at least download something.

AVI files aren't of any exceptional standard. The extension stands for Audio Video Interleave and many different codecs are used to create and subsequently play back such files. It's entirely possible the Xbox 360 cannot play the database you want because it is an unsupported codec.

Do you have a home network beside the 360 connected to it? If so you may be able to use Microsoft's Windows Media Encoder to convert the file into a WMV on your PC and next stream it direct to the 360 over the network. I have done this near some video files, though the length of time it takes to reencode make it unlikely that I'll pursue this very often.

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