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hmm dunno what ones you have been using but the e-series are very good
and to be honest we really have no problems with any of our dell kit
most problems are laptops but thats usually because they get the most hammer when they get chucked around and dropped and stood on and sprayed with salt...
no it would use optical usually but yes i suppose you could use phono if you stripped off teh casing liek you have to do for optical if not using teh xbox hdmi cable
you will get digital generation loss pretty much no matter what you do even if you keep the bitrates the same as the original source it happens with all digital media
im not denying the 360 isnt the best way to do it. having a media pc is by far the best way to do it
it doesnt matter what its encoded in as long as the bitrate is high enough plays wmv hd just fine iirc thats vc1 based as used in bluray and hddvd nativly
but using tv versity it plays them all aslong as the pc decoding it is fast enough
i havent played it since last night bud will rinse it some more tonight and let you know
unless you just play all teh way through level 20 but dont go any further :s