Anyone here use Xbox 360 for movies? Particularly the new Slim model? I've been having a most strange problem.

I downloaded & burned a BRrip in 480p of the LOTR Extended Trilogy. The Fellowship movie works just fine. The Two Towers is the problem. The movie starts. But then in the beginning where Gandalf The old Wizard stabs the Fire Dragon creature with his sword, I get a status code 69-80070017 error saying movie's unplayable. I tried everything I know. Downloaded Optional Media Update, turned off/restarted console, tested other discs, converted the movies to wmv & re-burned them, sent the console for repair (Xbox rep told me to do so on the phone after I spoke to him about this). All with no good results.

I don't know why the original, not converted avi version works normally with a flash drive. But both the avi & wmv versions give me problems with the disc. I would've burned onto DVD-RW if the burner supported those types. But it doesn't.

Any help?