For those who can live with commercials and can install Chrome, the following are the instructions to get the hulu addon to work with chrome. It requires a one line change to the hulu addon and a modification or creation of playercorefactory.xml.

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in stream_hulu.py, find the following lines of code:


    def play( self, video_id):
        if (common.settings['enable_captions'] == 'true'):
            subtitles.Main().checkCaptions(video_id)
        try: smilSoup = self.getSMIL(video_id)
        except: smilSoup = self.getSMIL(video_id,retry=1)
        if smilSoup:
#            finalUrl = self.selectStream(smilSoup)                          # Comment out this line
            finalUrl = 'http://www.hulu.com/stand_alone/%s' % (str(video_id))  # add this line - space align to the line below
            displayname, infoLabels, segments = self.getMeta(smilSoup)

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In the XBMC/userdata directory you may already have a playercorefactory.xml, if so edit it and add the player and rule definition below.
If you don't have playercorefactory.xml, create a new one in an editor


<playercorefactory>
<players>

.... there may be other players, if so add the player definition below the current ones


<player name="GCP" type="ExternalPlayer" audio="false" video="true">
<filename>C:\Program Files (x86)\Google\Chrome\Application\chrome.exe</filename>
<args> --new-window --window-position=0,0 --kiosk --child-clean-exit "{1}"</args>
<hidexbmc>true</hidexbmc>
<hideconsole>true</hideconsole>
<warpcursor>none</warpcursor>
</player>

</players>

<rules action="prepend">

..... there may be other rules, if so add the rule definition below the current ones

<rule filename="http://www.hulu.com*" player="GCP"/>
</rules>
</playercorefactory>


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Notes:
1 - C:\Program Files (x86)\Google\Chrome\Application\chrome.exe is where my chrome is installed. If you have it elsewhere, change to point to it.
2 - When you run XBMC, make sure that you close chrome before running XBMC.
3 - If you (like me) have a dual display and want to run on the second display, change --window-position=0,0 to --window-position=1930,100. You may need to play with the exact cooridinates, based upon the resolution of your first screen. The idea is that it needs to be beyond the end of the first monitor.
4 - exiting the popup chrome window:
    if you are using a keyboard, its easy ctl+shift+Q.
    if you use the xbmc remote for ios (like i do) when you press stop, the screen will go back to XBMC, however you will get a really irritating "restore session" bar at the top the next time you run. I don't know how to get rid of this. It goes away if you open crome as a browser and click on the small 'x' at the end of the bar, or you can use the mouse to do it.