Currently the X360 renderer is forcing transcoding audio to WMA2 (with WMV video) which does not support multi-channel audio and therefore everything being transcoded will be stereo only. WMA-PRO which is supported by the X360 supports multi-channel audio and has recently been reversed-engineered (can be decoded using ffmpeg since sep09) but unfortunately ffmpeg does not yet support encoding WMA-PRO (and I'm guessing it's a low priority) so until this is supported I thought about trying other formats.
Recently the DivX labs extension to Windows Media Center (Windows 7 only) added support for MKV + AC3 (no DTS) which can also be played on the X360 without full transcoding (blazing fast, it is hardware accelerated - CPU is at 1% while playing 720p MKV) I'm not sure what they are doing there but apparently if you convert your MKVs from DTS to AC3 you can play MKVs with 5.1 audio on the X360, the video quality seems to be lower which makes me believe they might be converting to MPEG-4 + AC3 and thus the lower video bitrate.
According to http://blogs.msdn.com/xboxteam/default.aspx the only valid combination (except WMA-PRO) for using multi-channel audio on the X360 is AVI: MPEG-4 Part 2 + AC3 (dolby), the bitrate is lower and the movies will have to be scaled down but it should work.
I changed MEncoderVideo.java to use vcodec="MPEG4" and the acodec to be AC3 which is supposed to be a valid combination for the X360, I then had the mime type be sent as "video/avi" but no matter what the X360 reports that the file type is not supported, forcing the channels to 2 does not work either.
Trying to use AviSynth/FFMPEG which is encoding using "mpeg2video" and AC3 also doesn't work so I figured I'll ask here.
Does anyone know what other combinations can be used on the X360 except WMV+WMA2? The X360 seems to refuse all other combinations and does not seem to care what is the mime type as long as the video is WMV encoded.
I also might be missing something so if anyone can tell me what else needs to be changed in ps3mediaplayer to have it transcode to MPEG-4 and AC3 (with muti-channel) it would be very helpful.. so far looking at the command line ps3mediaserver uses to call mencoder it seems like what I did should work but it doesn't
Thanks!
