Something that has been sort of misrepresented in these discussions is this "streaming" that everyone says they're doing... Playing a file through a windows share using Resco Explorer is not streaming. It is basically copying sequential pieces of the file form the host PC to the player's buffer. True streaming is a one-way communication form server to client usually using UDP protocol (not TCP) thus avoiding all the acknowledgement packets having to go back to the server and wasting bandwidth. With UDP there is also a lot less overhead since it does not even have to create a session.
Well that's great you might be thinking... so where can I get a Divx streaming server for my PC?
Well... umm.. I don't think there is one.

I hope I'm wrong but I have not found one that a regular user can implement.
For the bold and curious:
http://mpeg4ip.sourceforge.net/index.php
One thing that does help (though not completely) is a modification in the registry on the x50.
If you increase the TcpWindowSize setting to 65535 (from 32767 default) it basically tells the TCP stack in the PPC that it can receive more data and so there is less throttling form the sending PC.
Hkey_Local_machine\Comm\TcpIp\Parms\TcpWindowSize = 65535 (DWORD Decimal)
This does not overcome the problem with the wireless connection slowing to ~500 kbps while the CPU is busy rendering the playing video but it does shorten the time it takes to buffer itself up and continue playing since it can go up to ~2500 kbps while not rendering.
I am interested to know if any of you have a CF or SDIO wireless card that you can try instead of the built-in WLAN to see if you get the same behavior.
Also if there are any steps that could be taken to improve the functionality of the WLAN driver. One suggestion I found worked somewhat was freeing up and assigning as much program memory as possible (at least 30 meg) before turning on WLAN....
The answer might be somewhere on aximsite but I'm lazy and tired.
Nite people, hope this helps...
-NC