The Xbox 360 allows you to copy files from a USB flash drive onto the Xbox 360 hard drive or any storage based device that's connected to the Xbox 360. Once copied onto the Xbox 360, the video can be played and manipulated using the Xbox 360 on-screen media player. The Xbox 360 supports the following video formats: AVI, DIVX, MP4, WMV and ASF.
Turn the Xbox off. Connect the USB flash drive to any USB port on the Xbox 360.
Turn the Xbox on. From the Xbox menu, select the "My Xbox" tab. Select "System Settings." Select "Memory."
Select "Flash Drive." Select the "Videos" sub-folder. Select the video that you want to put on the Xbox 360. Select "Copy."
Choose the storage device that you want to copy the video to (e.g. "Hard Drive").