Movies on XBOX LIVE?

So, the grand unveiling took place Thursday night on MTV and I have to say, I was expecting more. But then I thought, this is just to whet our appetites. We'll get more information at E3. So, let's hope so.

I'm thinking if Microsoft is serious about positioning the XBOX360 as the new media hub in the home, why not USE that 20GB hard drive to store films downloaded from XBOX Live? I've been reading that you will be able to network a Windows Media Center PC to stream stored video to the 360, but what about the millions of us who don't have a Media Center PC?

Picture this. You go on XBOX Live and scroll through a list of new releases. Select a film from the list and pay $3 via your Live account to rent the movie in standard definition or HD. The download begins while you listen to music, watch a show you recorded earlier, or play a game with friends. Or you might choose to start watching the first part of the film as you download the rest of it. The film is stored on your XBOX hard drive for a specified amount of time or maybe until you rent another few films (the netflix model).

More announcements to be made about XBOX Live at E3, so we'll see.