Since Microsoft isn't budging on letting the Xbox 360 playback DivX, some crafty folks have come up with a super easy way to transcode DivX to WMV on the fly.

Yeah, we know you could do it on a Media Center PC before - but this will work with any old setup.

TVersity 0.9.9 is out featuring on the fly video transcoding for the Xbox 360.

We also have many improvements to the GUI and a preview of our new media library navigation interface (in the picture) which is designed for web enabled devices with Macromedia Flash.

Grab it from TVersity [thanks Gizmodo]