You can connect external storage devices. Right now I can stream Windows Media Video (WMV) files over my network but that's all. I'm working on making it so my 360 can playback ANY format but it's not going well. Maybe they'll put out an update that allows it!
Thats what I was looking for. I have an external drive of wmv, avi, mpeg4 files that I was hoping I could play via my 360 onto my LCD tv. It takes time to have to format and burn to cd or onto my ipod.
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