Just a couple of weeks ago there was a bit of a stir (one of many links) created by none other than G4′s Attack of the Show co host Olivia Munn over a tweet from her twitter account mentioning Microsoft and Hulu together. This was before E3 and many people thought, or more appropriately hoped that there would be an upcoming announcement at E3 about a partnership. Now E3 has come and gone and while we did get some good news about upgrades on Xbox Live regarding Facebook, Twitter, Last.fm, and downloadable content, Hulu was nowhere to be seen.

Hulu for those of you who have been living under a rock over the last few years is an online television streaming service that consists of several different television companies owning a large stake. You can watch many show the day after they air on television in standard definition or in 420p. Hulu started with Fox and NBC as well as some of their smaller channels providing content. ABC has since joined the fray, and it seems that the Hulu train just keeps tracking, what with the release of a standalone desktop application and going into countries outside of the US in addition to the ABC deal. Hulu’s quality is not all that great, but as someone who has gotten rid of cable and satellite and watches all of their television streaming or downloaded from the internet. it is pretty nice.

So what was the stir all about. Apparently it was just something to do with Bing, Microsoft’s new search engine and some advertising on Hulu, with Munn involved in the ads. It stinks to get your hopes up, but there may be a silver lining. In an interview with G4′s Patrick Klepek, Xbox Executive John Schappert, when asked about Hulu on Live said, “I will say that we are always — I think as evidenced by our partnerships that we’ve announced — we’re always looking at new opportunities,”"I will say that we are always — I think as evidenced by our partnerships that we’ve announced — we’re always looking at new opportunities,”We’re always looking for new opportunities” and “it takes a while to form these relationships.” That definitely sounds like a step in the right direction for the possibility of geting Hulu over Xbox Live. Now if we could just get the networks to agree to live streaming.