Creating Streamable WMV with 5.1 or greater audio for XBOX 360

Currently the XBOX 360 only supports a/v streams with 5.1 audio using either AVI or WMV (as defined here: http://support.xbox.com/support/en/u...aybackfaq.aspx). Since they only support AVI up to 1280x720, which is fine for DVD but not for BlueRay, I'd like to settle on converting my DVDs and, in the future BlueRays, to the same format for streaming.

What I'd like to know is what are the current easiest ways to convert a DVD and/or BlueRay disc to WMV with 5.1 audio so that I can stream it over my home network to my XBOX 360's? Most solutions I've seen create WMV with stereo audio. I currently use Vista Home Premium so a solution that works with that would be highly desirable. I've searched these forums and googled the net at large for the answer but much of the available information is dated (1-2 years old; i.e. forever in net years). Of the solutions I've seen, many either are obsolete or relatively time consuming and complex (requiring 5 or more individual tools). I'm hoping that there are better/simpler ideas out there currently.

Encode360 looked promising but support has stopped on it in favor of EncodeHD, but that lacks 5.1 audio support. There were references that the Windows Media Encoder that it used for the back-end was a deprecated tool, and, since the last version of the tool dates back to 2006, there seems to be credence to that claim.

Thanks in advance for any help you can provide!

Really I'm starting with DVDs currently, but want to stick to a format capable of the same resolutions that you would get in Blu-Ray for when I transition to it. Nothing pirated, these are discs I own. I just want the flexibility to stream them over my network without finding a given disc (plus I can also put them into storage this way and save precious book shelf real estate). Why do you say that it would badly degrade Blu-Ray? WMV streaming to XBOX 360 is capable of 1920x1080 with 15 Mbps data streams. While I'm sure there will be some minor loss in quality, I don't expect it to be major.