Unsupported video formats for Xbox 360?

[TSVChargers]

I have used PMS for my PS3 with no trouble at all, and it works fine for my Xbox when I have files in mkv format. However, I prefer to view them in mpeg because the transcoding process really kills my laptop, and mkv2vob works fine instead. However, when I try to play mpeg or mp4 or an avi format, the xbox tells me it is unsupported. I am really hoping somebody can help me with this problem, because viewing mkv's is almost not an option. And I know the solution is probably obvious, but I've been trying to fix this forever. Thanks for the help guys.

[maanitrules]

I'm having the same problem right now!
From what I understand, xbox 360 had an update and you must be signed in to an XBOX live profile/account to download this update, and must be signed in to that profile to run that file!

MKV files stream without problems, but a avi file, such as a tv episode or something does not stream and I get the status code:51-C00DF236 error message for unsupported content!

my main problem is that I have a banned console, and no way of getting that update on my console anymore, so is there anyway that the ps3 media server treats those files in the same way as those mkv files?

would love to hear some input from others who've had a similar problem and were able to fix it!