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I came across this error when trying to play back WMV files encoded from DVD using DVD-WMV via Media Center on my Xbox 360. I only noticed the problem using an Xbox as a media center extender with Vista (I'm not sure I had this issue with XP Media Center Edition), and only with files encoded using DVD-WMV. It took me a long time to track down the solution so here is what I found. I hope it helps some of you:
1. There are two solutions to this error message proposed on the Microsoft web site. I don't have a link (perhaps someone else could post this if they know it), but searching on key words in the error message / Xbox 360 media center etc should turn up the Microsoft proposed solutions. Neither of the Microsoft solutions worked for me however.
2. The solution I found relates to a problem with the properties of the individual WMV file created by DVD-WMV. Frequently you get '>' as the title property (not the file name) of the WMV file when you encode a DVD to WMV using DVD-WMV. I'm not sure why this happens - possibly this occurs if you look up the details of the DVD you are encoding using IMDB. Files with this character in the title property seem to cause the above error message when played back on an Xbox 360 acting as a Media Center extender with Windows Vista. Not sure why this occurs, however it is easily corrected. Simply right click on the WMV file in Windows Explorer, select Properties. In the properties dialog box, select the 'Details' tab. If the Title of the file in this details tab shows as '>' either just delete it or change it to something else (pretty much anything else is fine). Try the file again on your Xbox via media center (no need to restart anything) it should now work fine. Note - this is the title property of the WMV file that needs to be changed (nothing to do with the file name, though sometimes these are set to be the same.