I've had that for ages for my Mac and Windows machines:
iPhone app called AirVideo.
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Except this one works over the internet too (that part is still beta though but does work). And doesn't only allow you to stream your iTunes library, but just about ANY video on your network if you share the folder. It will do live conversion of most formats and extremely well (over wi-fi at least - haven't tried it on 3G yet). A bit of stuttering in the first few seconds of a movie, then smooth as a baby's botty.
I gave it the acid test by live streaming a 10GB 1080p version of Avatar to my iPhone. Did it beautifully.
Posted By: Steve in Holland, Sep 2, 12:03:00
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