Morac said: What exactly is considered "local playback"?   Is it basically any device on my LAN? For example if I enable streaming to my PS3 and set the "Use optimized videos for local playback" to never, will it use the actual videos for streaming?   If so that would be great. Does this require a firmware update to use though?

Your assumption is correct. As has always been the case, any time we detect that the computer from which you are accessing the Pogoplug Web UI is on the same LAN as your Pogoplug, the Web UI will talk directly to that device. We can now use this to allow you to set discrete options from streaming remotely vs locally. For example, if you have set your local streaming to Never and your remote streaming to Always, then any time you stream on your LAN, you will get the original video, and every time you stream from outside your LAN, you will get the transcode.

No firmware update required.

Sorry for being ambiguous here. PS3, XBOX, etc. will all take advantage of these new settings. However, this is the case only for media on Remote Access shares on your Pogoplug enabled PC. There will be an update eventually to allow physical Pogoplug devices to use these settings, but for now only your Pogoplug enabled PC will take advantage of them. A future modification to the UI will make this clear.

I am not sure yet about whether mobile apps will respond to these discrete settings, but will let you know as soon as I find out.