Replacing Apple TV with Xbox 360, Video Questions

I have had an ATV for a little over a year and thanks to Handbrake I now have an incredible Movie Library over 600 flicks ripped for ATV with the .m4v extension. This month I am getting an Xbox 360 and would like to use it in place of my ATV and move the ATV to another room. I have been doing my research and everything says I should use Connect 360 or Rivet to make contact between my iMac and Xbox 360. Though I have read that movies with the extension .m4v will not read. I have read on various sites that I could just change the extension to .mp4 or .avi and it will work fine. Though alot of the data out there on connect 360 and Xbox 360 streaming seems to be outdated and I can't tell what has been fixed by updates. so... my questions are,
1. Will my movies stream to xbox 360 via connect 360 in the .m4v format?
2.If no, can I just change the extension to .mp4 or .AVI? (I changed the extension from .MP4 to .m4v on some movies when I got the ATV due to some recognition issues in itunes last year and had no problem)
3. If I change the extensions will my ATV still be able to play these videos from elsewhere in the house?
4. Will it all just work flawlessly with no problems thanks to amazing updates from all parties?

I wanted a next gen game system. Part of the way I could convince my wife to let me get an xbox (Im whipped) was to offer to move the ATV to the bedroom so she could view our media in there. Since the Xbox has media center qualities I figured I would take atvantage of them. Now I trying to figure out the best way to get both working.

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