Is it possible for me to watch videos that are online from my computer and have them go through my xbox so I can watch them on my tv? I'd be using hulu.com fro the videos.
Yeah, I do this back home. What you need to do is add all your movies into Windows Media Player, then enable sharing and set the Xbox as one of the devices allowed to connect to your computer.
It's a lot easier to do it this way than it is through that windows media center bullshit. Look it up online and let me know if you have any questions about it.
That's exactly what happens. You just need to load everything into WMP so your xbox can see a catalogue of movies. You don't need to actually play anything on your computer.
Trust me, look it up, I do exactly what you want to do with this at home.