QUOTE(srpape @ Apr 1 2009, 01:09 AM)

Any update on this? I'm having the same issue, and really struggling trying to find an easy way to convert my Xvid/AC3 files to WMV with surround. I posted a link to here on the xbox 360 forums, but they erased it saying links to "hacking sites" aren't allowed.
Having same problem but might be able to help.
The problem is caused by attempting to pass a digital signal through an analogue output.
It's nothing (as far as I can tell) to do with the video bitrate. I have been experiment with the xvid decoder FAIRUSE, and have found that all my xvids work in both analogue and digital output.
Apart from 1 type.
384kbps AC3448kbps works fine - I've got an Xvid in AC3 5.1 of Transformers, Quantized to 2 at around the 3Gb mark. Plays beautifully.
Harry Potter (2, 3, 4 and 5) are same Q, around 1.9Gb. But stutter when pushed through analogue.
These have a 384kbps AC3 5.1 track.
1. Sort of useful Solution (takes around 7 mins to re-encode):VideoDubMod - (Open Video) - Audio - Streams - Stream List - Interlaced - 160ms Preload, 160ms Frame Interleave - Full Processing Mode - Video - Direct Stream Copy - Save as.
Unfortunately, the file size increases exponentially, but it works in analogue. This re-interlaces the audio with the video at a more efficient rate (and adheres to AC3 32 frame standard).
2. Works Every Time Solution:[b]
Don't re-encode,
Output video to SVideo / Component / Composite (don't plug in the audio cable)
Output Audio to Digital (Optical or Coaxial).
Job Done. (For me, anyway), but best of luck.