After experiencing a lot of similar frustrations as others on here, I finally found a solution that works for me to stream videos to my Sony Xperia 10 Android based smartphone.  I don't transcode using the Pogoplug software, as that takes for ever.  I optimize videos using AVS4U video conversion software, and it's much faster.  Then I transfer those videos into my Pogoplug directory through Windows, which again is much faster than going through the Pogoplug software. 

I do have sharing with the XBox / PS3 enabled, and under the transcode section, "always" is checked, but when I go to watch the video on my Android smartphone using Moboplayer, I click on "play original" and the video loads in about 10 seconds over the 3G cellular connection I am using. 

I'm now able to watch videos on my Android smartphone without problems, and I can also jump to anypoint in the video without issues.  Hopefully this helps some people out there.