Extremetech has an article on how to turn your Xbox 360 into a media extender. As I have mentioned before, the Xbox 360 is the only version 2 media extender to work with Vista’s Media Center.

From the article:

Once you’ve configured the Xbox 360 and your PC, you can share almost any media on your computer right through the usually-superior speakers, video equipment, and other gear that comprises your entertainment system. It’s a great way to show photos to friends, watch digital video that you’ve uploaded from a camcorder, or listen to your favorite tunes. The 360 even ports over playlists from your PC, and you can create your own on the fly.

The article is a good step-by-step of how to setup the Xbox 360. Pretty basic stuff but worth reading nonetheless.