i've used connect360 with the old xbox for a long time.

here's what it supports:
What formats are supported?

Connect360 supports MP3, AAC, WAV, AIFF and Apple Lossless for Music. For Photos, Connect360 supports: JPEG, RAW, GIF, PNG, BMP and TIFF. For video streaming, currently only WMV+WMA, AVI (DIVX/XVID), H.264 and MPEG4 files are supported (in MP4 and MOV containers).