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It plays every file I have thrown at it: shn, flac, mkv, mp4, mov, avi, mp3, you name it.
There are two USB 3.0 slots on the side but if you attach a Seagate 3.0 TB and a Western Digital 3.0 it won't work.
It has a hard time recognizing movies (mine caught about 80% - much lower than Ember or Boxee catches).