Windows 7 - Whats the best file extension/codec for 1080p/5.1 streaming?

I'm looking to stream some of my Bluray rips from my Media Center server to my 360. I just recently got a 1080p TV (kinda late I know) and was just doing rips at 720p in .mkv and then converting them using mkv2vob to .m2ts using what I assume is an mpeg2 codec. I've noticed if I do the same with 1080p movies it stutters and the sound cuts out here and there.

I havent tried yet, but I read that using x264 as the codec and .mp4 as the containter (please forgive me I'm using the wrong terminology, I really dont know a ton about this). Would that give me better performance? Or could someone suggest a way to make 1080p while still keeping good quality 5.1 audio stream perfectly?

Heres my "server's" specs and network if it helps:
AMD 9600 Quad Core
4gb RAM
10/100 LAN (no gigabit)
GeForce 8600GT graphics card

Netgear 16 port 10/100 switch, both the 360 and the server are on it.
It might be important to note that the server could be recording one or two shows at once while I'm watching the movie. Hopefully thats not going to cause problems.

For BluRays i use a MKV container ..
x264 Video Stream with AC3 5.1 Audio.

I usually downsize to 720p @ 6000 bitrate, but a few I leave at 1080P at around 14000.


I also just use NeroMedia Home and stream directly from the PC to the TV with no transcoding at all.
And let the TV Upscale 720p to 1080p.


For the Xbox, Im not exactly sure never tried it. But it may be something with the codecs, or the actual x264 settings that it doesnt like.
Try maybe leaving it as x264, and something like 5 or 4 Ref frames/3 bFrames for example.

Thanks for the reply! Do you know if m2ts is transcoded on the fly by Media Center? Would that be causing the stuttering because of the extra work?

M2TS, like MP4 or MKV is nothing more than a container.
Most trancoding will be done on the Video/Audio Streams.



According to Wikipedia, the 360 supports WMV, MOV, TS containers as well as H264,MPEG-2, MPEG-4, WMV video formats.
Although it doesnt go into much detail.

If your MKVs have a AC3 audio stream and H264 Video stream, you could try (if the MKV container is not working) using TS Muxer.
Add the MKV as Video and Audio, and choose .TS for the container.

Should take a few seconds to mux, and if what Im reading is correct, the Xbox should be able to play it as-is.


Again, im not that familiar with media playback on the Xbox, so maybe someone else with experience has something better to offer.