Lifehacker shows us how to turn your Xbox 360 into a streaming netflix player in this article
The steps were in general as so:
Step 1: Set Up Your Xbox as a Media Center Extender
Step 2: Install the vmcNetflix Plug-in (download here)
Step 3: Set Up Watch Instantly on Your PC
Step 4: Set Up vmcNetflix on Your Xbox 360
Step 5: Enjoy!