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I took my old XBox (not a 360--the old one) and installed XBMC, the XBox Media Center. Then I crawled into my crawlspace and dragged some cat5 between my router and the TV center in the corner of the living room.
Now I can stream video across my network in any format, any size, and it'll play on my TV as if it were a video game. Pretty hot.
Until I did that, my solution was to burn DVDs and transport them to the TV via Sneakernet.
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