[Cyber Akuma]

Well

After TONS of researching and reading I have found my answer:

There is no f****** way to do it

Even the tools included with XDK only convert FROM another video format to XMV, not the other way around.

The only thing that even comes close is

1. A program that is made to be run on the xbox dashboard itself that lets you VIEW xmv movie files.

But.......... if they can make a program running on the xbox view the files in sure they can make a program on the xbox encode too, but I guess the original programmer thaught that would be too use. I am not 100% sure but I think that this wasnt made using the XDK.

2. An Xbox emulator called cxbc that can apparently play the intro movie of Turok, which is an .xmv file. At first that was all
it could do but now it can do some 3d wireframes as well. This emulator WASNT programmed using the XDK either.

Well, this prooves that there is a way to view xmv movies on both the xbox and the pc without the XDK. And if playback is possible, encoding/converting must be possible too, its just that nobody has bothered to write a program/codec/splitter to do it.