Firstly, Engadget has info about the new 360 Dashboard update, due out the week of May 7th. this includes:

  • The update hits the beginning of the week of May 7th
  • Your contact list will now integrate Windows Live Messenger, and show joinable session status
  • Messenger contacts can see what game you’re playing, and your gamertag
  • Marketplace will now have its own blade, which will be skinned independent of your theme
  • Users will now get inline achievement updates (i.e. see what achievement you just unlocked and how much it’s worth).
  • Low-power download mode and auto-shutdown
  • Progressive download: watch, fast-forward, and rewind partially downloaded movies
  • You can text chat messenger six friends playing games watching movies
  • Multiple tweaks on the user interface

Next is a QWERTY keyboard attachment for it, which will allow you to talk to friends over Live Messenger. Very sweet! Finally, and definatly the most important part, H.264, MPEG 4 and WMV Plays4Sure playing is now available! Bring on the downloads! :)