will xbox play 1080p?

No...

max displayable resolution is 1080i, you need to set you xbox to NTSC if it is a PAL device & 1080i becomes an option.

also due to the processor & GPU speeds you may be able to play 1080i content in divx or xvid format but the xbox is unable to handle .x264 with any decent resolution - its just too CPU intensive...

There is a new website for the xbox & xbmc BTW... www.xbmc4xbox.org

My xbox I have set up for 720p & I usually have to re-encode any x264 content so that it will play. Just yesterday I found two blogs explaining how to set up a computer to reencode video too complex for the xbox & stream it to the xbox so that you can still watch it....

http://dandar3.blogspot.com/2010/12/vlc-streaming-transcoding-to-xbmc-for.html

http://dandar3.blogspot.com/2010/12/ps3-media-server-streaming-transcoding.html

I tried the first one using VLC last night & it worked like a charm!

Cheers

If you have an iPhone or an iTouch, you can run a free AirVideo Server on the PC from which you share to your XBOX classic.

http://www.inmethod.com/air-video/index.html

Then you can use your iPhone to tell your PC to convert the .x264 (.mkv, .mp4), 1080p files to an .m4v (640x272) file in-place, which an old XBOX will play just fine. Takes about 6 minutes to convert a 1:45 movie on my PC. (6 Core AMD 3.2GHz)

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