I think I understood, but in my situation I don't think It will work. I have a rather large WMC (TV/EPG) / MB3 (VIDEO) server that has 3 tv tuners and other stuff connected to it. That is the server. My 50-inch is connected to that server in the living room and one remote controls everything from there. Right now I'm extending that whole experience into my bedroom with XBOX 360. I don't think that a HTPC with WMC can replace my XBOX 360 in the bedroom. WMC cannot act as an extender for another WMC. Isn't that correct ? Maybe I'm just not excepting to not use WMC "extenders" as it is old tech
My Setup is pretty much the same, please see my signature.
I have setup multiple WMCs in my home as "extenders", I simply setup each WMC and installed the HD Homerun tuners on each machine, therefore allowing each WMC to get livetv and a guide.
The recordings from the main WMC server is shared and each WMC "extender" adds the shared folder to its own recordings library. This enables all recordings to be shared and luckily, FIOS does not have a copy once flag on the channels I record. If you dont have a shareable tuner like ceton or hdhomerun, use ServewrWMC for livetv on other devices.
I've come to the conclusion that I hate media containers. MKV, AVI, MP-whatever, DVIX, XVID... blah blah blah.... Nothing is 100% perfect.... & the XB360 only supports a few. See here h t t p://msdn.microsoft.com/en-us/library/windows/desktop/bb189661.aspx & h t t p://support.xbox.com/en-US/xbox-360/system/audio-video-playback. So, I've decided to only use ISOs. This provides menus, extra content, subtitles, different languages, and the ability to future rip to any format when necessary. This also provides backup copies of my dvds. I believe transcoding will allow you to push/pull ISOs to other devices such as the XB360.
Lastly, and more importantly, no manufacturer or format is more universal that the native DVD format... which means ISO is basically universally supported now and in the future. As technology improves, and as other formats like h.323 and the like become more standard, DVDs will still be supported. I believe sooner or later, BR disc ISOs will become my preferred format because of 4k resolutions that DVD cannot support. Until then, get or upgrade to a decent machine that can transcode - and dont go cheap. My setup cost was least $600... bought 2 years ago and is still going strong. I even have vmware workstation running other VMs on my main WMC host server and cpu usage is rarely greater than 5% during normal usage.... I have yet to look at the usage when transcoding but transcoding ISOs to my xb360 works great.
One day my xb360s will die, but the universality of the iso format will allow me to easily move away from WMC when/if necessary in 2020 when XB360 and/or Win7 support is dropped.