So you have a range of movies and videos on your home PC, now you would like to take full advantage of that nice big screen TV that you have your xbox360 hooked up to. With a little bit of home networking, and some useful software you can stream your videos from your PC to your xbox360.

Prerequisites
Xbox360 is connected to your home network such as a router. (I have a linksys wireless router)

The best way to get started is download microsoft's windows media player 11 or the zune software. Personally I use media player 11.

While in Windows Media Player 11,
Go to Options->Library Tab

now click Configure Sharing. While under media sharing, select your xbox360.

Fire up your xbox360 go to the Dashboard under the media tab you can now navigate your pc from your xbox360 to watch all those legal movies on your PC.

Notes:
1) the latest update to xbox360 allows for streaming of divx as well(avi's)
2) use this for pics, movies, and music
3) Dont forget to add all your media to the library in windows media player 11 to be able to stream your media.