Help streaming to Xbox

For some time now i have had an external hard drive or USB sticks connected to my xbox to play downloaded avi content. In order that i could take advantage of streaming to various phones and tablets in the house, i bought a my book live 2B and have transferred some of my files onto this. My issue now is that a high percentage of my avi files that played perfectly from usb now do not play from my book live. They freeze or stutter or dont play at all. I can run them through media converter and change them to mp4 and they will play but this is obviously another step in the mix i could do without. The my book live i have does not allow me to switch to Twonky as it is one of the newer versions. Is anyone able to offer me any help to have these files play or is it just some incompatibility with the xbox streaming from my book live. If worst came to the worst i would consider buying another media streamer, not sure about the wdtv live as i have seen some mixed reviews. I have connected the my book live to xbox both wireless N and hard wired using extenders. Thanks for any help,

If files slutter then you have a network bottleneck, if they don’t play at all then the encoding is not supported. I’d go with the MP4 files/