You might have a video file that wouldn't normally work in your browser's FlashPlayer, your xbox360 or your PS3. The Pogoplug will attempt to transcode it; making it work on those platforms.

Local, in this sense, means that your computer(or xbox360, or PS3) is on the same network as the Pogoplug.

If you already know all about video-compatibility and format your videos yourself to work wherever you need it to, using HandBrake or similar tool, you probably could just disable Pogoplug's video-optimization.

The only limit to the Pogoplug is your imagination... and C skills... and linux skills. ^_^ h\t\tp://download.pogoplug.com/opensource/pogoplug-gcc.tar.bz2

yes

The only limit to the Pogoplug is your imagination... and C skills... and linux skills. ^_^ h\t\tp://download.pogoplug.com/opensource/pogoplug-gcc.tar.bz2