Apparently not being able to rewind and fast forward is a limitation of the Xbox itself and nothing on the PC will be able to fix it.
For this reason I no longer use this and I just convert to MP4 and put any videos on my 400gb external hard disk. Plug it into the 360 and away it goes.
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"Children are smarter than any of us. How do I know that? I don't know one child with a full time job and children." - Bill Hicks.
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