hey I modded my xbox and thats what i use to watch everything... so easy to do really... plus with a new hd you can take gigs of episodes and films over to ppls houses etc, with no need to burn it to cd/dvd. plus you can put xbox games, emulators and more on the hard drive. All in all you get a sweet package and it will be able to play all new video formats from here into the far future.
xbox rocks.