Audyo said:
You can link your Xbox with the PC for entertainment purposes, meaning you can watch videos, listen to music, browse through pictures that are on your PC with the help of either the latest WMP or Zune’s software.
With Vista, the XBOX360 is considered a “windows media extender” and should integrate directly with Windows itself over the network. I haven’t had the chance to play with those features but I imagine they’d make the XBOX a media powerhouse when combined with itunes or peer-to-peer.