The biggest update to the new interface is easily the addition of streaming Netflix movies from computer to your Xbox. You'll have to be a paying subscriber of both Xbox Live Gold and Netflix to enjoy unlimited streams, but man is it nice watching movies from PC or Mac to your console. The system isn't perfect; sometimes it took the optimizer up to four times to decide what video quality to use with my broadband connection (a little annoying). But overall, I'm sold on the idea, and the integration between Netflix and 360 is stunning.

Xbox Avatars look better than Miis

I groaned when Microsoft decided to borrow from Nintendo with the announcement of Avatars in July. But after creating my own, they've grown on me, and their use ads a bit of warmth to what was formerly a pretty cold experience. In a lot of ways, I think Avatars are better than Miis. They look cooler, there are more customization options to choose from, and the background music is delightful. I doubt they'll be as popular as Miis, however, as you cannot email your Avatar creations to others. But there are a nice touch.

Live Party shows promise for online multiplayer

The second most impressive feature is the new "Live Party" system, which lets you voice chat with up to eight Xbox Live friends while playing games, watching movies, or gawking at a photos. I was unable to preview this, unfortunately, and doubt how often I'll want to watch movies or view sideshows with a headset on. But it could end up being a slick new way to play multiple online games with your BFFs over the weekend, so wait for it.