I only use this device as a Media Center Extender. I was of course very disappointed when firmware 1.02 came out, and MKV[1] still did not work in MCE mode. I repeatedly complained, and was always told that there is a limitation in the Media Center Extender specs that prevents MKV from working. Frankly, I never really believed this because there's no reason that MP4 Video would work (But they do) and not MKV, since both containers typically contain the same audio/video streams and neither is natively supported by Vista. And If so, it push me to find a solution on Converting MKV to MP4 format.
When Windows 7 beta (and then RC) was released, I installed each on my computer and did some testing. Of course, I was sorely disappointed that MKV is still not natively supported by Windows. But, we MKV users now have a White Knight to help fight our battles: DivX. Their new "DivX Plus" setup uses MKV as a container. Now, with Vista, when you install DivX it installs an MKV splitter, and H.264 with AAC codecs. Windows 7 is a different story, however, because it already has H.264/AAC codecs (and because it uses Media Foundation instead of DirectShow).
And now, when I rip my own Blu-ray movie to MKV format, or help my friend convert them AVCHD M2TS footage to MKV file, then I can easily playback these MKV output on my Windows 7, besides no Free MKV Codec Download involved.
At times you need MKV Converter Software
WinX HD Video Converter Deluxe is most popular MKV Converter software. It fully supports Multi-core CPU (i3, i5, i7), and armed with Hyper Threading Technology (Converting MKV by multi threads at the same time, speed up the conversion timely). That is why WinX MKV converter program can be the fastest solution in the current market. Free Download to Experience>>
Behind this MKV News
1. Convert M2TS to MKV: allows you make HD video source from internet to digital content that playable upon your Blu-ray player and PS3 Xbox.
2. Convert MKV to iPhone: Play MKV on iPhone 4 960 by 640 Retina Display.
3. Convert MKV to iPad: Playback MKV movie with iPad 1024x768 LED display.
Related External Source
[1]: Matroska MKV Video Knowledge from MKV Official Site