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DVD to hard drive, then watch from hard drive
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ChadTower:

Modchip allows you to install applications on it.  Install Xbox Media Center and you can stream things TO it and watch them on the TV. 
DrumAnBass:
The Xbox Media Center is AMAZING... Cannot stress enough how much it rocks! Not the easiest thingto configure, but once you get it going it is great. Also streams from a shared iTunes library.
ChadTower:

The hub that runs to my upstairs is only 10mpbs... any idea how well XBMC functions with that bandwidth?  Not a hard thing to do to upgrade that hub but I'd rather know it is a limitation ahead of time.
DrumAnBass:
Well I use it with a cheap (Motorola) wireless adaptor - and my main computer is an old G4 running OS-X with a Linksys WRT54G router. The Xbox cannot handle streaming video from my Mac. So I just FTP ripped DiVX movies to the upgraded 200gb drive I installed in my Xbox. Music streams perfectly.

However I have heard that you should be able to succesfully stream video from a PC using Samba sharing. The best place for info on this stuff are the forums @ http://xbox-scene.com
severdhed:
another vote for xbmc.

i stream divx movies from my PCs over 100mb network and it works fine, i've never tried over 10mb.  you can pick up a 10/100 switch for like $15 at newegg.com
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