This is normal. The encoding on the pogoplug takes some time. Tech support told me that for every 1 minute of video it takes 2-3 minutes to encode it. From my experience it has taken much longer. I use the program Handbrake to encode all my videos. Further explanation is available on this topic.

I've got 5030 to go, have had my pogoplug transcoding for months. What's most annoying is videos that do get encoded dont play anyway. There seems to be no way to watch avi files. My mp4's just play fine, but the pogoplug wants to transcode them and the avi's dont play even having being done. I am now questioning is there any need to transcode or is it just slowing down my pogoplug interface needlessly?