thought I'd put this up here as it's taken me about a week of various searches and trial and error to get this about right for my needs hopefully this post will save other going through the process again.
For the past few years I've had a Media Centre set up and have happily been using a combination of DVD Shrink and Nero to save all my DVD's as Nero Digital mp4's the quality was decent enough for my needs and it didn't take up vast swathes of HDD space.
I recently purchased an XBOX360 and wanted to use it as an extender got it set up and found that i couldn't play any of my films through Media Centre on the xbox

then i noticed there was an update (via xbox live) to allow the 360 to play DivX files and installed that it only works with the Nero Digital files that have been saved as "standard AVC" and only through the dashboard not through Media Centre, i still wasn't satisfied.
So i chose to re-encode all my films to wmv however none of the programs i could find would want to work with the Nero Digital format here's how i got around it.
Firstly i downloaded the k-lite codec pack (full) and installed k-lite using the default setup with a few tweaks, under directshow filter i chose the ffdshow codec for both DivX & Xvid, then under VFW video codecs i unchecked Xvid & DivX, everything else in the install was left as standard.
Next i downloaded Windows Media Encoder freely available from MS and installed that.
the controls for encoder are fairly easy to understand under the compression tab i clicked edit and applied the following settings to get reasonable video and retain the 5.1 audio from my mp4 files...
Under the general tab i set the following :
Audio - CBR - Windows Media 10 Professional
Video - CBR - Windows Media 9 Advanced Profile
Under the second tab "XXXXkbps" i set the following:
Audio Format : 192kbps, 48khz, 5.1channel 24bit CBR
Video size : checked the "same as video input"
set your frame rate to your region ie PAL - 25fps
then under video bit rate, I've set this to 2000kbps which is good enough for me but really it's a matter of preference and a compromise on disk space vs quality
You can tinker with these settings yourself but the above works flawlessly within XBOX MCE
I hope i have saved someone else a bit of time.
The only real downside is i haven't found a way to do a large batch of files and then have it turn the PC off so if anyone knows how i can do this it'd be appreciated. I can add numerous sources but as far as i can tell it'll just create one really long video file !
Now back to encoding
