PlayTo is one of the ways you can currently stream your movies from your PC to your Xbox 360.
Here's a support FAQ about it for the Xbox 360 for reference:
http://support.xbox.com/en-US/xbox-3...o/playto-setup
Requirements
The most recent software update for your Xbox 360
A Digital Living Network Alliance (DLNA)-compatible device such as a PC running Windows
A local network connection between the Xbox 360 and the DLNA-compatible device
Note The Xbox 360 console plays streaming media only from DLNA-server compatible devices. Some mobile devices, such as tablets and phones support DLNA but only in a client mode and can't share media with an Xbox 360 console.
Supported video file types
Xbox 360 supports the following video file formats:
Windows Media Video (WMV) 7, WMV 8, and WMV 9
Maximum resolution of 1920x1080 (1080p).
Windows Media Audio Standard or Windows Media Audio Pro audio.
WMV content may be Windows Media DRM-protected.
VC-1
Maximum resolution of 1920x1080 (1080p).
Windows Media Audio Standard or Windows Media Audio Pro audio.
VC-1 content may be Windows Media DRM-protected.
MPEG-1 with MPEG-1 layer I or II audio
MPEG-2
Maximum resolution of 1920x1080 (1080i).
AC-3 or MPEG-1 layer I or II audio.
WMV Image 1 (Photo Story 1 & 2) and WMV Image 2 (Photo Story

H.264/MPEG-4
The following audio formats are supported:
Windows Media Audio (WMA) 7 through WMA 9
WMA Standard content may be Windows Media DRM-protected.
WMA Professional
WMA Professional content may be Windows Media DRM-protected.
WMA Lossless
WMA Lossless content may be Windows Media DRM-protected.
MP3
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