Question : PC-HDTV direct connection VS Home Server-Xbox streaming

Hello,
I have my pc directly connected to my HDTV thru DVI/HDMI cable (from my video card to the tv) and a normal audio cable (from my integrated sound card to my old Onkyo receiver).

Now i would like to use my old Powerbook as media/file server (24/7 always on), and I'm thinking to use software like Rivet or Connect360 to stream my movies/songs/pictures on my Xbox360. In this case I'll use just the HDMI cable for audio e video (from Xbox360 to my HDTV) and i don't have to worry about starting movies, songs or slideshows of my pictures from the computer, but i could use my Xbox controller.

Does this second solution has some downside like maybe limited codec or crappy streaming? Which one do you think is the best solution?

Answer : PC-HDTV direct connection VS Home Server-Xbox streaming

Have never used MacOS for streaming like this but know people with exactly this setup which works fine.  From a first principles postion the only limiting factor will be the processing power of the Powerbook, potentially codecs can be an issue as there is a more limited range available for OSX but most mainstream codecs are supported. Pictures and audio should be no problem, with movies simply try it with plain DivX and then 720 and 1080 versions, with a 100MB LAN the only point that you'll get lag is with the media streaming package.