Windows 7: Media Center 360 Extender Options

Ok guys so im new to posting here but not new the the forum world anyways I have a few questions?

1. How can I increase my connection speed from my desktop to the 360 in order to stream higher quality data? My setup up now is my xbox is connected to a linksys g-wireless router and my desktop has a wireless card. I just now get enough bars acceptable for TV.

2. I have a few DVD's on my hard drive that are in .vob format. Im toying with the idea right now to make my desktop into a HTPC rather than build a new one...why do u ask? well my desktop is already a beast with 8 gigs or ddr2 ram overclocked to 1200 a q6600 quad core overclocked to 3.2 and 512 ATI radeon HD 4800 graphics card thats over clocked at a who knows what and a Hauppauge wintv-hvr 1600. So i have all the compnents nessecary to build a HTPC but want to make sure some things work like make .vob files play on MC extender.

3. does anyone know how the video and audio is streamed to the XBOX? like what format or quality. no reason to convert my PC to HTPC if its just going to be crappy quality.

4. Can we get the internet TV on the extender? dont see it like u do on the dekstop.



thanks for the help guys