Netflix for Xbox Live is getting an update on August 11th. Currently in order to add new movies to your queue, you have to hop on a PC and update the queue manually, with changes appearing on the 360 within moments. The 360 dashboard update on August 11th makes the process a lot easier, allowing you to browse from a selection of movies in a handful of categories. You can select and watch any of these movies instantly, or select from your instant queue, as usual.
It's not, however, as full-featured as the Netflix website when it comes to finding the movie you want. For example, if you have a specific movie in mind, you're usually out of luck. There's no way to search alphabetically through the Netflix instant watch library on the 360. You're also limited to the most recent movies added for to each category, so if the Top 50 aren't doing it for you, you'll have to go to your PC to delve deeper.