I've been troubleshooting for several days poor playback quality on MBC in WMC on my Xbox 360 extenders.
I have LAV installed as my splitter, video and audio codec on my HTPC. I also have W7Tweaker set to use LAV Audio for mp4's vice microsoft.
At first I thought it was due to unsupported container/codecs. So I ran all my files through handbrake. The movies in question are now:
Video: H.264, 4.0 profile, 1280x544
Audio: AAC, 2 channel
All the above should play natively on the Xbox 360.
I also have the Xbox 360 profile set under the DLNA portion of the MBS. It has mp4 with h264 and aac audio set for 'Direct Play' (see attached pic).
I also have MBC to 'warn if transcoding' and I do NOT get a warning so I assume it is not transcoding.
When I play the file through MBC in WMC on my HTPC it looks great! LAV splitter shows audio being played through LAV audio in the windows task bar.
However, when I go to my Xbox and use it in extender mode and access MBC through the WMC interface and play the same file the video quality is horrible. Very blocky and poor quality, audio plays fine. The file should be direct playing on the Xbox, so why is the video quality so bad?