Windows 7 is going to solve one of the biggest problem by supporting native video formats like H.264, MPEG4-SP, ASP/Divx/Xvid, MJPEG, DV, AAC-LC, AAC-HE in its core. With the new Media Foundation and Infrastructure and Directx 11 coming to Windows 7 it can take full advantage of the High Definition and Divx Video format with it.
So we can just forget about installing the codec files for Windows 7 and play the videos naturally in Windows 7.Windows 7 will include playback and transcoding of different video formats, DirectX Video Acceleration-High Definition (DXVA-HD), and overlays
- Popular format name : MP4, DivX, MJPEG
- File extension mappings : .mp4, .m4a, .mp4v, .mov, .avi, .divx
- Supports Change format of video and audio content as part of the process of transferring content from PC store to device.
- Play and trans code whole range of formats that come from cameras : Camcorders using AVCHD container, H.264 in MP4 , FlipVideo using Xvid
New Media Foundation and Infrastructure in Windows 7
Here is the Official Microsoft powerpoint on Video Improvements In Windows 7 which you can download and get more details on it.