HI,
Over on the Home Theater Pc User Group, They have posted a possible solution for those who desperately want to see the DVD Library menu on their extenders, and have the ability to stream the VOB Files.
Here:
http://www.htpcug.org/Default.aspx?tabid=168
Now, I don't own an extender yet, but I'm sure this solution is a bit of a fudge, as far as i can tell, the .VOB are being transcoded to Mpeg.
What i find interesting it that DVD Library will pick up the .wvx playlist files. If this is the case, what would stop you from creating a .WVX for every .AVI movie so it will show up in DVD Library? Question then is could you run the .WVX from the DVD Library and get the .AVI's to play?