my phat arcade 360 ain't show nothing when a usb stick is put on with videos. For safest bet, I put the wildlife video (720p, WMV) that came out with windows 7. But the box refused its existence. All that videos I put on it were max 3.5 GB in size with h.264 codec and the container was either MP4 or AVI. What should I do? The usb drive is a transcend make formatted with fat 32 and only 4 months old. If it had not detected the usb stick then it could have been something else. But then what is causing the 360 to not detect any videos when it does recognize the usb stick? Does the usb stick need to have a folder named like VIDEO/VIDEOS/Video/Videos or something like that? I did that too and yet it fails me. The suggestion to update the optional media update will come nothing into play 'cause the 360 is always connected to Xbox Live- means if it needed any update it is already been updated. ============= With this I have another question in mind: when we download a XBL Marketplace video on a usb storage and if it is recognized and can be extracted on the pc is it possible to play? I downloaded tomb raider E3 video and managed to extract it with Horizon but it looked like just a file named with numbers like BG3EFFF0......something like that with .FILE extension.