They say a picture speaks a thousand words so here's one of my pictures.Full Screen View here
We have been playing around with the new native Movie Library in Media Center 7 that replaces the DVD Library in Vista. It's still a little buggy in places but I have to say it's a massive improvement on the original DVD Library. It looks the same really but the main thing for me is the ability to add in lots of different types of video files.
So far we have confirmed the following types on the PC not all will play on the extenders however: .VOB (DVD)
.WTV (Recorded TV)
.DVR-MS (I needed KB961367 for playback on this build of 7000. Official beta might be ok without it)
.MP4Not too shabby a list at all, see the updated Video File types and containers table in PDF here.
For some types like MKV, MOV and Flash you need to install additional components as these are not natively supported