The New Xbox Experience went live at 10am GMT today and it's a dramatic improvement over the old blade interface. But beyond the Mii-a-alike Avatars and the slick, Apple-esque menu system, is NXE the entertainment Trojan Horse that Microsoft hopes it will be?

While the installation was straightforward (it takes about two minutes), Xbox owners might encounter a '8000ffff' error message as Xbox Live creaks under the strain of millions of global downloads.

It's not a major error – this code pops up when your Xbox can't retrieve content information from Xbox Live.

Digital downloads

When it does work, it's now far easier to browse Microsoft's Video Marketplace. The latest video content is arranged like a Cover Flow of iTunes album covers, showing you a a selection of current highlights.

Click on the movie Speed Racer, for example, and you can watch a preview or rent it (in both Standard and High-def versions). Extra info now includes a better, longer synopsis plus key cast and crew details.

Cost-wise, movies can be rented in Standard Definition for around 400 MS Points (£3.40) or in High Definition for 600 MS Points (£5.10).

These are ballpark figures, as the price varies from title to title.

Video rentals downloaded from Xbox Live expire 14 days after purchase or 24 hours from when you hit 'Play'.

Dig deeper using the 'Explore' option and you can narrow your video searches to a single category – Movies or Independent & Music Video.

Pressing 'Y' lets you view 'All Videos' in a nested menu system, making it simple to browse through the available content. 'New Arrivals' and 'Most Popular' options provide extra signposting.

Xbox + Media Center

The Media Center option is hidden away in the My Xbox menu. Bar a graphical makeover, linking a Media Center PC to your Xbox 360 is much the same. The Xbox checks your network for a Media Center-compatible PC and then generates an eight-digit setup key – I.e. 0322-0867. You then fire up Media Center on your PC, choose 'Add Extender' from the Tasks menu, and enter the setup key. The rest of the process is automatic.

Once you can get it to work, the Media Center integration is undeniably handy. But it does rely on you owning a Media Center-capable PC. The Xbox 360 is crying out for a USB TV tuner in the mould of Sony's PlayTV.

There's no denying that the New Xbox Experience gives the Xbox 360 a much-needed UI makeover. But the impressive visuals paint a thin gloss over a lack of compelling movie content and UK users don't have access to the Netflix option, which really turns the Xbox into a full-blown virtual video store.

Nevertheless, it's a good start. Is it the 'biggest moment in the history of the internet'? Um, no.