I just finished getting the XBOX360 configured for a 'cheap' extender solution. It's hard wired into the network, but I'm finding that any mkv greater than ~10GB is essentially unplayable.
I'm not overly concerned with my movie library as I'll continue to watch movies off my HTPC, but I was just wondering if this is a limitation of the XBOX or my HTPC? When I'm monitoring the HTPC when the XBOX is choking on playback, NIC utilization is less than 1% (gigabit) and the CPU is less than 10%. I encode all of my Blu-rays the same way - just depends on the film as each varies in final output size.