Despite its awkward limitations, this is perhaps the powerhouse of consoles for media playback. Sure, it can’t play 5.1 channel mp4s (they have to be downmixed). But it is still a great playback device. Netflix streaming is available to Xbox Live Gold members. Playback from the dashboard is solid. The MCE concept is a good one, but poorly implemented. Perhaps my PC just isn’t strong enough. But I never really had a good experience with the MCE...perhaps because of transcoding issues. I had a setup that automatically converted my downloads to dvr-ms files for native Media Center [Extender] playback. But I still had problems. Not so when playing from the dashboard, so that’s what I’ve built my setup around.
The Wii is also hooked up to the projector. It doesn’t do HD. The 360 does. Therefore, there is currently no need to have the Wii do anything other than play games. If I ever move it to another screen, I’ll set it up then following the guide here to connect it to TVersity.
The TV in the bedroom is hooked up to an original Xbox running XBMC. It’s not powerful enough to handle HD, hence having uTorrent set up to get SD and HD versions of shows. TVersity serves XBMC well, though I could connect directly to a SMB share from the FreeNAS box. For some reason though, that connection has been so slow as to timeout, so I just let TVersity do it.
PlayOn also serves XBMC well, and THIS is how I get Netflix in the bedroom, in addition to Hulu, CBS, etc. I imagine any HTPC running XBMC could connect to TVersity and PlayOn. Just add a new video source, browse, and select UPNP devices. The servers should show up.
Bear in mind, this is just one way to do things. My way. It works for me. Figure out what works best for you. Good luck.