Videos are choppy

I am running XBMC on my original XBOX. If I RIP one of my DVD's to a file (.avi or .m4v), store the file onto a PC that I have a share on (so the file is being streamed from a PC, not on the XBOX hard drive), the movies plays so choppy that it is un-watchable. Is it because the app compressed it? I want to convert all my physical DVD's to files and pull them up on demand and view them