New Features
* Download Manager: Marketplace items now download in the background, you can queue up to six pieces of content.
* DVD bookmark support will remember the film’s timing and location when resuming viewing.
* Fast-forward and rewind now offered at 2x -16x for any videos saved to hard drive.
* Boot to Dashboard setting will bypass the loading of any disc in the drive and open directly to Dashboard during power-on.
* You can begin slideshows from any photo.
* The music player saves "shuffle" setting.
* The music player saves "repeat" setting.
* The music player now displays which file is currently playing in the playlist.
* The music volume level persists between game / reboots.
* Eight new locales added (Chile, Brazil, India, South Africa, Poland, Hungary, Czech Republic, and Slovakia).
* Separate settings are now offered for Game and User volume controls.
* Themes can now be set from the "System" blade on the Dashboard.
* User-selected music continues play when switching from Dashboard to game or game to Dashboard.
* "All Arcade Games" added as a selection in the Xbox Live Arcade area.
* Personal gamer pictures are now allowed, displayed only to those on your friends list.
* Added support to disable sound effects when navigating Dashboard.
* Instantaneous "Change Theme" option has been added upon downloading new Dashboard Themes.
* You can preserve the folder structure of source when viewing photos.
* A / B labels now provided to identify memory units in Dashboard.
* Online status is set to "Away" when screensaver becomes active.
Credit Goes To:
http://www.xbox.com/en-us/community/news/2006/0605-springrelease-features.htm