From what I've read online, MS allows XBOX 360 to play DivX movies now. I just got mine yesterday (brand new). It's hooked up to the network, and I think it's already been updated. I had no luck playing DivX movies via Media Center (xbox sees them but can't play) so I burned them to DVD+R disk. XBox shows "Mixed Media disk" message at the bottom of the menus but won't let me do anything with the inserted disc

Do I have to burn dual layer in order for it to play movie? Or am I wrong assuming that Divx and Xvid is supported?
P.S. I also tried TVercity, but it didn't even recognize XBox on the network..