Set Up your XBOX as a Media Extender.

Video Formats: WMV, H.264, MPEG-4, and PlaysForSure (for HD WMV)
Audio Formats: WMA, WMA Pro, WMA Loseless, MP3
Picture Formats: JPEG

The requirements are simple. You need a PC and an Xbox 360 on the same network (it should be at least 100Mbps for streaming high-def stuff). The PC can be fitted with Windows XP (with Service Pack 2), Windows XP MCE 2005 (fully updated), or Windows Vista. To share media via the simpler method, it should have Media Player 11 or Zune Software installed. The 360 should simply be fully updated with the latest dashboard revision. It's beyond the scope of this article to detail how to set up a network, but other sections will include this information can provide some clues.

Once your network is complete and everything is updated, the process of sharing media is a breeze.

1. Turn on your PC and your Xbox 360.
2. In Media Player 11 or Zune, invoke the Media Sharing window. In Media Player 11, click in the Library tab on More Options, then click Configure Sharing. In Zune, click Options, navigate to Library, and click Media Sharing.
3. Click Share My Media…, and in the box shown check the stuff on your network you wish to share (such as your Xbox 360).
4. In Media Player, click Allow, then OK; in Zune, click OK.

That's it. In Media Player, you can click the Settings button for more options. Of course, to share your media, the computer needs to be on when you're at your 360.

Now, visit your Xbox 360. Navigate the dashboard to the Media tab; navigate to Music, Pictures or videos and click the A button; then navigate to Computer and click the A button again. Select your PC, then navigate through the appropriate player and enjoy the media of your choice.

This simple-yet-powerful method lets you see all the photos, videos and hear all the music on your PC that the player is set up to recognize. Note that if you have multiple computers on your network sharing media (or even multiple programs on one PC sharing media, such as Zune and MP11), you can select a computer through the Xbox 360 menu. Just navigate to System, then Computers, and then Windows Based PC. Select the computer and sharing program of your choice.

While we called the previous method "simple," this one's really not much more difficult. The only major difference is that you have to jot down or memorize a code from one device, scurry to the other one and enter it.

Here are the steps:

1. Start up the Media Center PC and the Xbox 360.
2. On the 360, head to the Media section and select Media Center. Press the A button.
3. Head on through the prompts until you get to a screen offering an 8 digit code. That's your setup key. Jot it down on something, or commit it to memory if you have a really big brain.
4. Head to the Media Center PC and start Media Center.
5. Go to Tasks, and select Add Extender.
6. Follow the prompts. Enter the setup key when you're asked for it.
7. Follow the rest of the prompts to complete the setup.
8. Head back to the 360 and start Media Center. You should now have access to all the media on the PC.

For your convenience, Microsoft created a full-color reference guide (PDF) for remote-controlling Media Center on the 360 (which you can do with an Xbox 360 remote, any Windows Media Center remote, or the Xbox 360 gamepad).

If you get into trouble, visit Microsoft's Media Sharing FAQ.

Once you've configured the Xbox 360 and your PC, you can share almost any media on your computer right through the usually-superior speakers, video equipment, and other gear that comprises your entertainment system. It's a great way to show photos to friends, watch digital video that you've uploaded from a camcorder, or listen to your favorite tunes. The 360 even ports over playlists from your PC, and you can create your own on the fly.

It's a terrific bonus to the gaming prowess of the 360—if, that is, you ever take a break from gaming.