So from what I understand, the latest 360 update adds support for Divx. Simple question, if I burn Divx videos directly to a CD, DVD, or DVD-DL, will they play on my 360?

How about on a flash drive?

Yes on the discs, not sure about flash drives (though I imagine yes)

Works perfectly with a flash drive. You don't even have to transfer the files onto the 360. They play right off my thumb drive.

Exactly. Microsoft did Divx support "right". I was able to play my Divx (and Xvid) files burned onto a data CD, usb thumbdrive, usb harddrive. Low bitrate divx files for my smartphone and mp3 player played great. Even hires, hibitrate Divx files (DVD copies for my media jukebox) played without a hitch too.

i've had 2 tv shows not play on it, thats about it. DivX/XviD support rules!

It'll read off any media, but the 360 won't play some older versions of divx. It's pretty odd about that, considering I can play the same file on my Philips divx certified dvd player.

for some reason the 360 i have wont read my external hard drive. It has the usb cord and all but when i plug it in nothing comes up. I use a 250gb hdd. Anyone know why it wont work?

Is it FAT32?? Pretty sure NTFS isn't supported by the 360...

Can it not read NTFS drives?

Why doesn't everyone just stream it from their PC? Isn't that like 20x easier?

Wireless connections + streaming = enemies. (I'm about 150 feet away from my 360 and theres about 6 walls between us, and the router is a good 75 feet between us.)

Though we did just buy a N Draft Wireless Router that sped the fuck up out of everything.

Ummm, no it's not. There are plenty of reasons why attaching a USB harddrive is superior to streaming.