AVS Special Member
Join Date: Mar 2009
Location: Visalia, CA 93291
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I used to stream movies to my xbox, but only DVD ripped with Handbrake in M4V /MP4 formats. That's the only format I found to play without any issues. It will not play MKV or M2TS. You will have to re-encode it, which will degrade video and sound quality.
So, you will need 2 HTPC to accomplish what you want. Or create a media server, and buy two media players that support jukeboxes.
Or you can try transcode on the fly to play the movies on xbox. Such as PS3 Media Server, TVersity, Mezzmo, Plex (I'm not sure if xbox supporst plex) etc. Again this will degrade video and sound quality.