I have gone through the PS3MediaServer option, the TVersity option and some other smaller lessor knowns. With Windows Media Center and DivX Plus everything else falls away. You don't need anymore than these 2 pieces of software to stream to your XBox with no problems.
On the networking side, the wireless adapter on the 360 is fine for SD movies. HD movies tend to stutter and take forever to pre-buffer when the movie starts. Just not worth it. I took the plunge and had the entire house wired up with CAT5 cable and got everything wired. Now we can have multiple streams going around the house with no worries. Wire definately the way to go until wireless picks up in reliability and speed.
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