Media Playback from External Drive?

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I was recently gifted an old (unreliable but I'll take what I can get) 360 from a family member who bought a new one. Since I am currently using my PS3 on a computer monitor away from the main room I thought it would be great to use the Xbox as my DVD/media player in the living room.

But... how? I have AVI files that I know will play on an external hard drive but I keep getting an error message that I need to download an update to play them. Which is a problem because I don't have the wifi adapter so you can imagine the criss cross of wires people already generally have and then add a 20ft ethernet cord to the mix and just... no.

Do I have to be online to play my media? And if so, do I need an Xbox Live account? And if so does it have to be gold?

I'm getting a headache just thinking about it.
 
No you do not.

Just hook it up, let it update, then disconnect.

Don't think you need gold at all.
Worst case is Silver which is free.

But I think it will update without either. Been a while for me.
 
You need to go online and download the optional media update. It's a file, I think it's on the game marketplace. I play all my movies and TV shows off my 2TB external HD. Once you get it downloaded you're set to play the files both online and off.

You'll need a silver membership for the download. You can make one quickly on xbox.com and then import it.. I'm sure this all sounds like a hassle but like I said, it's basically a one time download and you won't have to worry about it anymore.
 
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