XBMC4Xbox

Sure but I will need the files of course also.

From what I've seen, it happens with any AVI DivX/XviD file burned on CD/DVD. Since I'm currently moving to a new house, testing further or accessing my files is a bit of problem, since I don't have any internet in my new house yet (I'm currently at my mom's place).

Just quickly tested this on Xbox 9.04.1 but it has the same problem, though it doesn't make the bug any less worse. I also tested some other avi-files but the problem seems to apply for any AVI-file burned on CD/DVD.

Something strange, I'm pretty sure we would have heard from people if all films on cd had this, also I've been playing some films from CD fine in the past. Sure it's not some specific ones ?

Nope, seems to happen with all files. Maybe it's related to the type of DVD drive? Btw. I also tried playing the files from the Xbox's HDD, no problem there. The log also looks weird:
21:16:02 M: 21311488 DEBUG: CApplication::OnKey: 168 pressed, action is 20
21:16:02 M: 21311488 DEBUG: CDVDPlayer::SetCaching - caching state 2
21:16:02 M: 21311488 DEBUG: demuxer seek to: 219511
21:16:02 M: 21311488 DEBUG: Pause stream
21:16:02 M: 21315584 DEBUG: ------ Window Init (DialogSeekBar.xml) ------
21:16:02 M: 21172224 DEBUG: Stop stream
21:16:02 M: 21180416 DEBUG: CApplication::OnPlayBackSeek - Playback skip
21:16:02 M: 21172224 DEBUG: Stop stream
Previous line repeats 23 times.
21:16:03 M: 21176320 DEBUG: CDVDDemuxFFmpeg::SeekTime - unknown position after seek
21:16:03 M: 21176320 DEBUG: demuxer seek to: 219511, success
21:16:03 M: 21680128 DEBUG: Stop stream
21:16:03 M: 21979136 DEBUG: CDVDPlayerVideo - CDVDMsg::GENERAL_SYNCHRONIZE
21:16:03 M: 21979136 DEBUG: CDVDPlayerAudio - CDVDMsg::GENERAL_SYNCHRONIZE
21:16:03 M: 21979136 DEBUG: Stop stream
21:16:03 M: 21962752 DEBUG: CDVDPlayer::SetCaching - caching state 3
21:16:03 M: 21962752 DEBUG: CDVDPlayerVideo - CDVDMsg::GENERAL_SYNCHRONIZE
21:16:03 M: 21962752 DEBUG: CDVDPlayerVideo - CDVDMsg::GENERAL_RESYNC(219520000.000000, 1)
21:16:03 M: 21962752 DEBUG: CDVDPlayerAudio - CDVDMsg::GENERAL_SYNCHRONIZE
21:16:03 M: 21962752 INFO: CDVDPlayerVideo - Stillframe left, switching to normal playback
21:16:03 M: 21962752 DEBUG: CDVDPlayerAudio - CDVDMsg::GENERAL_RESYNC(215947812.500000, 0)
21:16:03 M: 21962752 DEBUG: CDVDPlayerAudio:: Discontinuity - was:219523704.326365, should be:216011828.241438, error:-3511876.084927
21:16:03 M: 21962752 DEBUG: CDVDPlayer::HandleMessages - player started 1
21:16:03 M: 21962752 DEBUG: CDVDPlayer::SetCaching - caching state 0
21:16:03 M: 21962752 DEBUG: CDVDPlayer::HandleMessages - player started 2

Just tested this on my other Xbox which has a different type of DVD-drive (Samsung vs. Thomson): exact same problem. I also tried another bunch of burned CD-R's with AVI DivX/XviD files, but all suffer from the same problem. The fact that people may not have noticed this before could simply be the fact that the default player, mplayer, doesn't suffer from this issue.... (?)

Certainly I will look into this. But my biggest mystery is that it has been present since the last stable release you say? I'm sure I have played plenty of cd based video. I will check though. Did you try the dvdplayer branch? just wondering if it helps. I also have a change from a xbmc.org branch in regards to seeking btw, not relevant to this perhaps but from reading ffmpeg mailinglists looks like an improvement. will check though and report back. cheers!

Cool! Thanks :-)