It seems that BeoMedia 1 will discontinued - so I am wondering how you play your media files on your BV7-40?
In my case I have an XBOX Elite that connects to the BV7-40 via HDMI in 1080p. Then I have the option of streaming content from my Windows Home Server (in my case: mp3, vma, jpg, vmv, newer AVI (Xvid) ), or from my TVersity streamer (installed on Windows Home Server) which does all other formats (in my case: older AVI(Xvid and DivX) files), or from my Vista Media center - if my desktop PC is turned on.
It works very fine and I am very impressed with the picture quality.
/MikaelB