360 Extender video not seen

I have experienced a strange issue with my new XBOX 360 extended and it
looking at the folders for my video.

I know that the extender does not suppor divx and various other video
formats even though my PC MCE does.. However, when I placed a divx file into
the folders that MCE and the extender watches then the 360 gets disconnected
from the PC when I browse the my videos on the 360 ( its totally fine on the
MCEPC ). In fact the 360 refuses to see ANY file or folder when it is
browings in 'My Video' and just comes up with the message ' the extender has
been disconnected by a user or other software on the PC '. This only happens
when I browse the videos.. my TV, music and every other function on the 360
is un affected. When I cut the divx file out of the watched folders then the
360 see's all my files and videos fine again and works perfectly...

Can anyone shed any light on this? Is seems stange that the simple placement
of the divx file into the watched folders for the extender causes this to
happen.

Please check the Application, System, and Security Event Viewer logs (right
you were disconnected and then post them here.

(This is likely item 3 in the following kb:
http://support.microsoft.com/kb/911123/en-us)

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