Time Capsule VS. Netflix on XBox 360

Hi there, looking for some help.
We have a TC set up as our backup device and wireless hub. Off that we run a G5, a MacBook, and 2 MacBook Pro's with no problem. Attached to the network is an Airport Express for the XBox360 that is connected by a Cat.5 cable.
The XBox connects to the network no problem, we've been playing Call of Duty for weeks.
Here's the problem...the Netflix-on-demand does not show up in the main menu which it should.
The user profile on the Xbox is not a child account s there should be no problem with permissions.
Both Netflix IT and XBox IT were entirely stumped by this so I thought I'd ask our specialists here.
Any ideas?
Thanks for the help, I'd appreciate any suggestions!

I'm having what seems to be the same issue. I run my Xbox via ethernet straight from my Airport Extreme with no problems. I just upgraded to the late 2009 Time Capsule 1TB and Netflix takes about a minute to load. And when it does it sometimes only lets me see my instant Queue and Party. Xbox live is quick and under the network test shows no problems.
After I reboot the TC it will sometimes let me view all the other Netflix options, like recently viewed, etc. Also, when I select on a show to watch it takes a while to load and the text info sometimes doesn't even show up. If I switch back to my airport, no problems; quick and nice. I've even set the settings between them to exactly the same, so it appears to me to be a Time Capsule issue.
Any suggestions?

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