Microsoft is gearing up another round of MCE extender hardware via 3rd parties like Dlink, Linksys etc. The first attempt fell flat on its face. In fact the only successful extender so far has been the 360 (which totally rocks BTW). This time around they will be looking to more faithfully represent the MCE and Vista MC UIs. And to entice you further... they will include native Xvid and Divx support!
No mention yet if the 360 will be blessed with Xvid as well. We'll keep our fingers crossed.