Zune Connects to Xbox 360
Wow, I don't know why I haven't read about this anywhere (I stumbled upon it looking at the Xbox website).
Basically all you need to do is download the Zune software and then click Options, Library, Media Sharing. I just tested this using videos and it streams just fine to the Xbox (it's QUICK too!)
PS: You do not need a Zune player to install the Zune software!
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