i use one different method for watching movies + subtitle in my xbox360, all time im using Shark007 codecs for win 7 it have many feature and is up to date
so im try to use shark007 codecs and now i have good perfomance.
for this tutorial your windows user must be password protected, i recommended that unistall all coded pack from your computers because shark007 codec packs is awsome.
so see how i done it :
1 - download a version of shark007 win7 codecs every time i download it from filehippo.com
2 - install it like other program no setting is required for installing.
3 - after install is finished goto ‘All Programs -> Shark007 Codecs -> Settings Application’ and right on it the click on Run as administrator.
for first time shark007 install default settings and then program is come up.
12 - enjoy your movies.
NOTE : if one day you want update your shark007 codec pack, first uninstall it then install new version never update it.
Sorry for bad writing and enjoy,