I have set up my XBox360 as a Media Center extender. The PC running Media Center (Win7 Ultimate x64) has Transcode 360 installed. I am able to watch 720p and 1080p MKV files through the XBox 360 extender, but the video quality is fairly poor compared to watching the movie on the same screen directly from the HTPC.
The HTPC is a Core i5 750 (quad core), and everything is networked using 1000 mbps connections. From what I can tell, the HTPC has some headroom with the CPU for more transcoding.
Is there anything I can do to get better quality out of the extender?
