Xbox 360 S will not play H.264 Protected Content from WMC

From USB storage device to Xbox 360 Dashboard Video Player: WMV(Unprotected), Mpeg4, H.264, AVI

From Windows Media Player 11 to Xbox 360 Dashboard Video Player: WMV(Protected), WMV(Unprotected), Mpeg4, H.264, AVI

From the Zune software to the Xbox 360 Dashboard Video Player: WMV(Unprotected), Mpeg4, H.264

From Windows Home Server to the Xbox 360 Dashboard Video Player: WMV(Protected), WMV(Unprotected), AVI

From Windows Media Center to an Xbox Media Center Extender: WMV(Protected), WMV(Unprotected), MPEG-2

If you video files are not compatible with you Xbox, you may need to convert using conversion utility like
Handbrake,
AppGeeker, etc., both of them have presets

to make things easier.

Hey there custom90gt.

Sorry to hear your troubles with H.264 content. To start out, are you or any users on your Xbox One part of the Preview Update? If so, have you had a chance to report the issue over on the Preview Forums? If not, let us know so we can best help you out. H.264
content is supported as
outlined in this FAQ, although if your files contain unsupported content it may not work properly.

It's H.265 not .264. .264 works without issue.

Hey there custom90gt.

Sorry to hear your troubles with H.264 content. To start out, are you or any users on your Xbox One part of the Preview Update? If so, have you had a chance to report the issue over on the Preview Forums? If not, let us know so we can best help you out. H.264
content is supported as
outlined in this FAQ, although if your files contain unsupported content it may not work properly.

It's H.265 not .264. .264 works without issue.

Yep, and it still doesn't work. Pretty disappointing considering how microsoft touts the xbox as a multimedia machine.

Hiya, bit long winded, but hope this helps!:

Supported File Types

The Xbox 360 supports AVI, WMV, MPEG-4 Part 2, H.264 and QuickTime movie formats. The file extensions included are as follows: .avi, .divx, .wmv, .mp4, .m4v, .mp4v, and .mov.

Video Playback

For video files with the WMV container, playback occurs at 15 Mbps (Mega-Bytes Per Second) with a resolution of 1920 x 1080. Files with the H.264 container have the same resolution, but are played back at 10 Mbps. For AVI and MPEG-4 Part 2 video files, playback
is 5 Mbps at 1280 x 720 resolution.

Audio Playback

The Xbox 360 supports WMA 7-9 and Lossless audio profiles for WMV video formats. Dolby Digital and MP3 profiles are supported in AVI formats. For MPEG-4 Part 2 and H.264 encoded videos, the console supports only two-channel AAC audio encoding.

Streaming Video

With Zune software, the Xbox 360 can stream unprotected AVI, MPEG-4 Part 2, H.264, and WMV video formats. Through Windows Media Player, protected and unprotected WMV videos can be streamed.

Streaming Tips

Download a third-party video codec package to expand the amount of video formats you can stream using the Windows Media Player. For better playback, convert video files into the more Mircosoft user-friendly WMV format using a third-party video conversion
program.

Source(s):

Video Playback & Audio Streaming FAQ for the Xbox 360

Hey there custom90gt.

Sorry to hear your troubles with H.264 content. To start out, are you or any users on your Xbox One part of the Preview Update? If so, have you had a chance to report the issue over on the Preview Forums? If not, let us know so we can best help you out. H.264
content is supported as
outlined in this FAQ, although if your files contain unsupported content it may not work properly.