Picked up an xbox USB adapter, loaded a 2 CD xvid movie onto a flash drive, and tried playing the movie directly from it.
There were a _few_ spots where the system couldn't read data via the USB 1.1 interface fast enough, eventually resulting in cache depletion and some dropped frames.
Tried increasing the cache. I eventually determined that "Video Cache - Local Network" seemed to be the setting that controlled caching for the USB drive. This did the trick, but obviously has the "side effect" of increasing the Local Networking cache.
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