http://www.digitalmediathoughts.com/articles.php?action=expand,8654
The Xbox 360 will, in some countries, come with a "shorty" remote - it controls the DVD playback, navigation of the blades, and it can be used to turn the Xbox off and on (perfect for those of us using the Xbox as a media box). There will be a "tall" remote that contains more buttons and will be sold at retail.
The Xbox 360 was playing a high-definition WMV file off an MCE computer located elsewhere on the Microsoft campus, and I was impressed - the video started quickly, was responsive to commands from the Xbox wireless controller (yes, you can control your media with the remote).
The Xbox 360 will also have the ability to play photos and videos (WMV only I think) from external devices, so you can hook up your Zen Micro and play music off of it, and someone mentioned you could connect a USB thumb drive with videos and it would work.
The one thing the Media Center Extender interface doesn't do is visualizations for music - which kind of sucks given the Xbox is going to be connected to the big-screen TV in most homes.
my "no visualizations" comment was strictly for the Xbox functioning as a Media Center Extender, meaning when you're connected remotely to your MCE 2005 machine and listen to music, you won't be able to use the visualizations off the MCE 2005 machine...which isn't a loss because they're really lame anyway. The Xbox itself has some wicked visualizations - a helpful person pointed me to this article. Can you imagine seeing this on your big screen TV? The real question is, if you're listening to music from the extender UI, is there a way to flip over to the local Xbox visualizations? Or will you only be able to use the killer Xbox visualizations for local music on the hard drive or a USB-connected player?