Now, I DO have some experience with that. It seems to work well, but it's not as seamless as I would like (and my wife would like). You have to pick the movie, pull up the "more info..." menu, select transcode, wait about 30 seconds and your movie is playing. With the slowness of Vista Media Center, plus the added slowness of the extender, I'm not a huge fan. But then again, I don't really have any DivX or XviD encoded stuff to speak of.

Ken. VaSSallo Series M60v2, VP100v2, QS8v2 SVS SB12-Plus