Best way to get a ripped Blu-Ray on to my Xbox 360?

[tabicat]

I ripped one video from a Blu-Ray disc, and now I have an MKV file with a VC-1 video track and an A52 audio track. What's the best way to convert this video to a format that's compatible with an Xbox 360? Should I just use Handbrake to transcode it to an MP4, or is there a way to avoid transcoding? I know that my Xbox can read an WMV that has VC-1 audio -- can I take advantage of that?