From what I've been piecing together from reading about the 9400M, it should be able to played compress (mkv blu-ray rip) 1080p content without a hitch, provided thats all you're having the system due (which sounds like you would with xbmc). I'm unsure if it will be able to play completely non-compressed 1080p as the card may run out of vRAM to buffer that (but I could be wrong).

 

Alright cool. Most of our content is 720p or compressed 1080 but we did keep a certain few in full quality (The Dark Knight, The Prestige, Inception, and a couple of others) and I just wanted to see if I needed to compress them or if I could leave them the way they were. I guess I'll see what happens when I try them later today. Thanks for your help.

 

If you go with XBMC, here is a good way to get your library whipped into shape.

Follow this guide, but use Ember media manager instead of media companion, make sure and use this link for Ember Media Manager because it's an updated version.

Also do a search on lifehacker for xbmc, they have a ton of great guides on how to do lots of stuff with xbmc.