You have to keep in mind, these units are low power devices-low in power usage and low in performance(marvell arm processor, low ram). the video conversion concept is great but execution is not. I wonder if it works better on a super powerful pc running their desktop software.

I gave up on optimizing the video. it takes too long and the results are not always what i expected. after waiting 24-26 hours on a file, all I got was a 10 second preview video. So I just turned off the feature in the web page settings and when I play them on my android phone when prompted I chose to play original.

my suggestion(and many other users)is to convert/compress them to the native resolution of your media play back device in MP4, MKV or H.264 format using Handbrake. I have been successful steaming AVI files as well as long as the player likes the resolution. for my Android Phone, that's standard definition(i think that;s 480x230). for local streaming it seems to work pretty well, remote streaming the variable will be your internet connection. You want the files as small as possible for remote streaming anyway.

goodluck