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One thing that's strange (reading the "media center" part--I'm reading the OP for the third time!) is that you can't get home videos to play on the 360.  Oddly enough, I can't get them to play on the PS3.  With a 500 GB HDD, 3 Flash drives, a Droid, and now, a friggin PC connected to the same TV as the consoles (a gift from God!) it's shocking how certain videos will play on one device and not the other.  I have no idea why that is!  Some movies only work on the PS3--some only work on the 360.  Everything works on the PC, though.