Ok, so it might not be an official Hulu-Microsoft partnership, but Secondrun.tv, an upcoming third-party plugin for Windows Media Center will allow you to watch Hulu videos, along with others, from within the app.
News of the Secondrun.tv first appeared on The Green Button forums, and is being developed by a forum poster calling himself Yaggs.
The plugin is still in public beta, but a video demo is available. Secondrun.tv basically takes selected RSS data from Hulu, and repackages it in a more TV-friendly format. Instead of a UI that absolutely requires a mouse, Secondrun.tv fashions itself in the likeness of Roku's Netflix box UI, with big cover art and a brief description below.
Shows are organized by network at the moment, but once you start playing a video, the Hulu website rears its remote-unfriendly head. But the guys at Secondrun are working on getting the basic functions working with the remote, and improving the playback UI.
Admittedly, it looks a bit more difficult to search for specific, obscure items that might be on Hulu (and TRUST ME, there is some OBSCURE shit). But if you want to browse the major and/or popular items from the video site, this app seems like it will do the trick.
No word on a release date, but the creator says it will be out soon. There's also no word on how it works with the Windows 7 version of Media Centre or the Xbox 360 Media Extender. [The Green Button via TheDigitalLifestyle via Geek Tonic via Download Squad]