Hack MCE with VLC???

How doesn't it play some divx and mkv's? You can change the codecs for MCE/VMC and change the file associations to make them viewable in MCE/VMC. There should be no need for VLC. ffdshow + CoreAVC should play everything you have and more.

i use transcode360 - works not only for xbox as extender but locally too.

Here are some Registry edits to make MCE recognize some of the formats.

[HKEY_CLASSES_ROOT\\.mp4]
"PerceivedType"="video"
"Content Type"="video/mp4"

[HKEY_CLASSES_ROOT\\.m2v]
"PerceivedType"="video"
"Content Type"="video/mpeg"

[HKEY_CLASSES_ROOT\\.mka]
"PerceivedType"="audio"
"Content Type"="audio/x-matroska"

[HKEY_CLASSES_ROOT\\.mkv]
"PerceivedType"="video"
"Content Type"="video/x-matroska"



[HKEY_LOCAL_MACHINE\\SOFTWARE\\Microsoft\\Multimedia\\W MPlayer\\Extensions\\.m2v]
"Runtime"=dword:00000007
"Permissions"=dword:0000000f
"UserApprovedOwning"="yes"

[HKEY_LOCAL_MACHINE\\SOFTWARE\\Microsoft\\Multimedia\\W MPlayer\\Extensions\\.mka]
"Runtime"=dword:00000007
"Permissions"=dword:0000000f
"UserApprovedOwning"="yes"

[HKEY_LOCAL_MACHINE\\SOFTWARE\\Microsoft\\Multimedia\\W MPlayer\\Extensions\\.mkv]
"Runtime"=dword:00000007
"Permissions"=dword:0000000f
"UserApprovedOwning"="yes"

[HKEY_LOCAL_MACHINE\\SOFTWARE\\Microsoft\\Multimedia\\W MPlayer\\Extensions\\.mp4]
"Runtime"=dword:00000007
"Permissions"=dword:0000000f
"UserApprovedOwning"="yes"

Or you can right click on the icon and select "open with" and then change default program to MCE. But this will open MCE every time you double-click on that file type.