No xbox here, I just have a Wii, which is my first gaming console since the original 8 bit Nintendo. One thing I wish the Wii did was play DVD's since my DVD player is on it's last legs. I had a friend over last night to watch some movies and I had to hook my laptop up to the TV since the DVD player was in one of it's moods!
I'm considering something like this:

I'll add an external Blu Ray player and use it mostly for media- it should handle just about everything I need to watch. Interesting to know about the xbox thing though.
Def