Over at the IIS website, if you have Silverlight installed, you can get a demonstration of the streaming technology that is the basis for the Zune Video Marketplace that will be used on XBOX Live later in the year. Essentially, when you click to start a film it will begin at a lower resolution (that’s how it will be able to start instantly). Then, as the movie progresses forward – and nearly instantaneously – the technology will bring up the film to the highest resolution possible for your particular situation.

When I tried this demo at work, I got a different graph reading than when I tried it at home, so I believe that this is actually working using your actual setup. It should also be said that the test video being used is pretty amusing too.

If you want to check it out, head over to the IIS website.