QUOTE(Smothermunchie @ Dec 2 2010, 01:42 PM)

I'm a newb to this and haven't read anything but.....
Using DVD Shrink, 100% uncompressed, I just transfer the Audio and Video folders over to the hard drive and play it that way.
It looks exactly the same as a DVD.
Only problem is because my hard drive is small, I can only play about 1 hour and 40 minutes like this.
Cheers.
OUCH! No, don't do it like that. If you're using XBMC on an Xbox, your best bet is to either A.) Rip the DVD in an AVI format, or B.) make an ISO from the disc and leave it on your computer's hard drive.
XBMC will stream ISOs over a network, giving you all of the DVD's menus, dolby digital surround sound, and full quality video. I've played a ton of DVD movies like this without running into ANY problems.
But if you want the DVD to be on the Xbox hdd, then definitely do it in a compressed video format. If anyone remembers AXXO, try googling around for his ripping presets. He always had amazing rips, but there are many others who are doing just as well.