The Xbox 360 makes it simple to manage content among multiple storage devices connected to the console. While you can play video directly from a USB flash drive, you can also copy video files from a USB flash drive to the Xbox 360 hard drive, memory card or another USB flash drive that is connected to the Xbox. The Xbox 360 supports AVI, MPEG4 and MP4 video formats.
Turn the Xbox 360 off. Connect the USB flash drive containing the video you want to download to any available USB port on the Xbox 360. If applicable, connect the other storage devices to their appropriate ports on the Xbox 360.
Turn the Xbox 360 on. Select the "My Xbox" menu. Select "System Settings."
Select "Memory." Select the USB flash drive with the video that you want to download. Select "Videos."
Scroll down and select the video that you want to download to the Xbox 360. Select "Copy." You will be presented with a list of options: Xbox 360 hard drive, memory card or USB flash drive. Select the storage device to which you want to copy the video.
View your downloaded video from the video library in the My Xbox menu.