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I'm not sure of the name, but I'm aware that there's applications to unpackage the video file out of the .MKV container and turn it into a WMV, which will then play on the 360. I imagine guides can be found online for such things, and I know a mate of mine has a set up that detects MKVs and unpacks them automatically.
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MKV2VOB? If that's the one you're talking about then it's never worked for me. Apparently it works for a lot of people but I can just never get it to work. Each time I get a new problem with it, it either converts a couple seconds or minutes of the video or sometimes it's without any audio.
Jam it back in, in the dark.