Thanks for the reply Alx330! I definitely want to keep 5.1 audio. In the instance where I have a disc with both a DD and a DTS track, I would really prefer the DTS track. Am I correct in my understanding that my only option for keeping 5.1 is the DD track though?
I am using Nero Recode. I see the following three options: LC-AAC; HE-AAC; AC3 (pass through). Is one higher quality than the other?
The page the I referenced above also says the following is supported by Xbox:
WMV (VC-1) video, up to 15Mbps, 1920 x 1080 pixels, 30 frames per second, WMV7 (WMV1), WMV8 (WMV2), WMV9 (WMV3), VC-1 (WVC1 or WMVA) in Simple/Main/Advanced up to level 3 in asf containers with WMA7/8, WMA 9 Pro (stereo and 5.1), WMA lossless in .wmv file formats.
How does this compare to MPEG-4 ASP/XviD?