Hi,
A couple of notes from experiences getting apps running on Xbox360 + Pika 2 extenders -
I don't think those margin settings work 100% - as the actual output method (ie. HDMI, Component, etc) + tv resolution/overscan (DLP RP, LCD, Plasma are all slightly different - and decoders/resolutions supported differ as well). So always best to try and come up with a middle ground 'balance' that works for everything (or gives you best support for 80% of what people have - but is still 'usable' for others).
DivX (and also H264) Support on XBox360 Extender mode... yeah this is what everyone is complaining about.. (and probably the single defining factor - apart from fan noise/size - why people are not just buying these instead of Pika 2 models)...
It was 'hinted' in one of the blogs/posts on TGB (?) - that Microsoft intentionally left this out of the Xbox360 extender offering (and have no intention to add it any time soon) - as a 'selling point' for 3rd party companies to make devices with PIKA 2.0 (and also hinted it was to protect the IPTV strategy on the XBox360 Dashboard - by not allowing 3rd parties to get in there via MCX)... I of course don't know the 'real story' - maybe Charlie can comment on this (and this might just all be a conspiracy theory). I do know it's a total lose-lose scenario for consumers + developers- and the Media Center platform - the way that all panned out.. (it's still the #1 reason why a consumer wouldn't buy a XBox360 to use as an Extender).
Niall