I have the s370 also. It does not play iso. Through DLNA, I am only able to get it to play mpeg. It doesn't seem to play anything with menu or chapter. Through usb, it supports more formats (like mkv). But still no menu and chapter.
I got fed up and bought a western digital tv live plus...
Sorry to hear about your friend. I totally understand, as my house was hit a few months ago with similar damages:
- cable modem and router powered on but did not function properly
- directv receiver powered on but was searching for signal forever
- ethernet ports on ps3 and xbox dead
- coax...
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