Setting up Tversity
Tversity is a media server/transcoder for the 360 and many other multimedia devices, its 360 support is excellent as it can natively stream all accepted 360 formats via spoofing its self as a media connect server. As for its transcoding abilities.. i wouldn't look to much into it..
Anyways go ahead and install Tversity if you haven't already done so. Tversity is a upnp server and the 360 is a upnp client so it is wise to have a fully functioning upnp network (for optimal connectivity and on the fly port mapping).
Note: See the resources section for a link to a handy tool for testing and configuration of your upnp setup.
Else you'll be port forwarding from here on out, port:41952 (TCP).
Next open tverstiy and configure it for xbox 360 playback, head over to "General Settings" change the media device to Xbox 360.
Now go to the transcoder tab and select "only when needed" under "when to transcode".
Set your Optimization to "Quality".
Select your connection type and quality (be realistic).
Set compression to minimum.
Set your max video/image resolution (720p or 1080P, whatever your hardware/tv can handle).
Select decode media as fast as possible under "Decoding Speed".
Now go to the sharing tab and add the folders you want to share and set the media tags (Use the green plus button).
Now to test it out, connect your 360 to your newly created tversity server and go into Video > My Video > Folders > "path/to/x264/media".
If you've done everything correctly it should play fine, but if you've messed up one of the settings/codec's you'll see an unsupported media error blade.
