I don't have the option "WMV Video File - XNA Framework".
The video I'm importing is in WMV format and was encoded using Microsoft Expression Encoder 4 with the settings set to the predefined "VC-1 Xbox 360 HD 720p" so I don't think there's anything wrong with the video... DRM is not enabled.
Some other guy had this problem too but he never found a solution (or he did but didn't bother to post it) - http://forums.xna.com/forums/p/51297/310710.aspx
And yes I'm on XNA 3.1 and the video is put in a folder called "Videos" in the HighResolutionContent folder.
I have no idea what to do now! Please if anyone has any idea on how I should proceed, help!
Thanks.