Someone in the Microsoft Vista Media Center team has reported that the XBOX 360 will be able to playback VC-1 video soon:
"Yep - we're enabling VC-1 streaming to Xbox 360; it's turned off in the build you have now, but it will be turned on for release."
This mean that VC-1 codec is probably already included in the XBOX360. It probably made it's way in the console during one of the latest Dashboard update. Could H.264/MPEG-4 AVC codec be also already included in the console? VC-1 and H.264/MPEG-4 AVC are both mandatory for hd-dvd/blue-ray... so if the hd-dvd drive is available at the end of November (according to EB-Games ) then both video format should be playable on the XBOX 360 at that time.
Let hope that Microsoft will allow streaming of both format to the 360 extender when Vista is released.