The latest DivX Tech Preview features a Media Foundation — the replacement for DirectShow in 7 — component that will demux MKV files and allow the video and audio streams to be decoded with native Windows 7 codecs. Well, that’s the theory anyways, we’ll be following the comments closely to see how this turns out in practice
MKV is becoming a standard for downloaded video content and having it working with Windows 7 and on Extender with minimal of fuss will be great. Read the details on Ben’s post
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This explains a lot and is very promising!