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If I own a DVD, I should have the right to rip it to DivX to watch it via my 360's media extender.
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I agree that you
should have the right to do that, but why on earth would you
want to? The Xbox 360 is already a DVD player...what's the point of ripping a DVD to your PC's harddrive, compressing it to DivX format (reducing the audio and video quality in the process) and then streaming it to your Xbox, when you could just watch the DVD directly on your Xbox to begin with?
As I mentioned earlier in this thread, one instance where's it's
really advantageous to rip a DVD is if you want to copy it to your laptop to watch on a plane. You're lucky to get 1.5-2 of battery life from a laptop if the DVD drive is in constant use, but you can easily watch a full movie if it's playing from the harddrive.