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#11
Hello GfromHull,
You can not, unfortunately, play .mkv files directly on your Xbox 360. But, there is a fast and easy way to change that.
I'm assuming the video in your .mkv container is H.264 and the audio is either MP3 or AC3.
In this case, download a small program (that doesn't even need to be installed) called tsMuxeR (available here).
After extracting that program, run tsMuxerGUI.exe. Click the "add" button and select your .mkv file. Check to make sure that your audio and video match what I said above in the "Tracks:" area.
Click the "Change level" checkbox and select 4.1 from the dropdown menu.
In the "Output" section choose "M2TS muxing." Click the "Start muxing" button. In a couple of minutes you should have a new file in the same location as your old file that is playable on both your PC and your Xbox 360, in FULL HD, along with surround sound audio (as long as it's AC3 audio... if it's DTS come back here and I'll show you how to convert to AC3).
The great thing about this method is that it's FAST and you lose ZERO quality from your file.
NOTE: This will not carry over subtitles, if the .mkv file has them. I haven't quite worked that out yet.
Enjoy,
Brian