Am I reading this stuff right..that I need to have windows media player stream content to my xbox360? I can't just mount the shared folder of files and get them that way?

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Yeah, you need to use some sort of upnp software to stream your media to your 360. WMP 9 and higher support this out of the box.

Note that codec support is somewhat limited and if your collection is heavy on 720p mkv's like mine is, you'll need something like tversity that can transcode/stream on the fly.

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World of Warcraft: Kallaystra, Gweila, Steakumn, Tarathia [ Feathermoon/Horde ]

There are also some third party apps that will get it working, if you don't want to or can't use WMP.

if you have media center it works really well for windows format files(wmv, etc). I use transcode 360 to convert other items like avis and it works really well...

I basically add folders/files that i want through the xbox media center, and then watch them... Not too difficult, but again - i have xp media center, so it might be different based on your OS. But ic ouldn't be happier with XPMC, especially now that i put in a capture card and its working like a pimped ass TIVO that i can watch through my xbox or on my computer/tv in the bedroom.