Funny when I run it on my machine (which isn't all that often mind you, since most of my stuff just works on the 360)it doesn't have such issues and also doesn't take hours, so I can watch my stuff when I sit down on the couch and not waste extra time waiting. Bottom line is both Sony and MS need to expand Codec support without using 3rd party utilities, but as it stands for my stuff the 360 runs more videos without the need for plug ins or extra software, than my PS3. Also to be fair TVVersity runs on the PS3 as well.

extra cost is moot. (got cut off or the previous post)

What about the millions of people who already own the 360 and have the Live account? Getting a Roku box would be an additional $99, and that's not counting what ever else you may need for the extra port, when not using the DVD drive (or even when using it for a movie)the 360 is relatively quite, maybe not as quiet as the Roku but not all that noisy in my living room when watching video. As for extra cost, even if I got the Roku I'm still paying for my Live! subscription for other stuff, also they didn't mention you needed Gold, which might still mean it's free as the Live! Silver(free)users (remember they too are Live "subscribers") have still been able to use all of the content features (just not online competition and leader boards) so if it works the same as getting other movies or other content then your argument of

@Vidikron (FU) Let me get this straight you criticize the 360's base software and then praise the PS3 for a third party app that still requires conversion for the files to be playable? Get real. I have both of the systems set up and as often as I wanted to just bring up my PS3 and play my video I've always run into the issue that more stuff just plays out of the gate straight off of my 360 than they do on my PS3. The limitations you speak of are on both platforms and made worse on the PS3 since less plays (at least from my video collection) without 3rd party apps. Third party apps run for both platforms and expand the flexibility of both of them but don't slam one platform when not running a 3rd party app by comparing it to the other when you are running one.

Updated my PS3 too last night and it's working fine as well, it was a launch 20GB that I upgraded the drive to 120GB

@ Extinction
Since when has anyone been able to install OSX on a PS3? I know Linux can be done with the limit on hardware access (no RSX functionality just frame buffer)but I've not seen OSX done yet. Let me know of a site showing how to get OSX in my PS3 and I'll install it.
"A decent framerate/speed/fluidity" Yeah not really most of the games have been running better (and in some cases looking better too) on the 360 with only a few exceptions.
"Lets you move swiftly between games, web pages and media without quiting the game" Since when? some of this is coming with 2.4 but not all of it. especially the between games, you select another game and it will quit the current one your in period, as a matter of fact Sony showed that, it is neat to be able to select another game though as long as it's an installed one.
Keyboard is supported for text entry in a lot of 360 games, but not game play, but then again on the PS3 only a few games support it as well, but at least some of games do support mice on the PS3.
I've got both machines and both have their quirks but the 360's interface was still more mature than the PS3s. Sony has been doing some good catch up and you do have some valid points (like the whole harddrive issue) but there are some quirks even in the features that the PS3 supports (like copying files from a share source, major pain if you have a lot of them, the file copy has quit on me a few times for no apparent reason). Oh and the PS3 didn't have all those features you mentioned at launch (I've had mine since launch).

Funny thing is the majority of multiplatform games have had better graphics on the 360 not on the PS3 or have come out even. (I have both systems).

You should check your facts, the 360 can upscale DVD with a HDMI cable or the VGA cable and DOES NOT NEED THE HD-DVD attachment to do so. It never needed that to upscale DVDs.

For all the people making comments about the 20GB and 40GB PS3s, newsflash the drive can be replaced by any generic 2.5 SATA drive. My 20GB PS3 has had a 120GB drive in it from day one. Also the drive swap doesn't void warranty either it was on page 8 of the manual on how to do it.

"If it wasn't for you meddling kids!" In the spirit of lifting trademarks, forgive me Scooby-Doo