The software is really an excellent one, better in fact than anything else in the field and this is true for both software and hardware media servers. As a matter of fact I have tried many of them until now. There is no problem transcoding and streaming media of any kind provided your system meets some essential requirements in both pc hardware and network connection subsystems. However I noticed a weird inability (I mean without stuttering) to transcode an 1080p mkv file by my system which consists of a core 2 quad processor with 4gb of RAM and gigabit wired connection to the ps3. The problem was obviously with the pc, since it was unable to fill up the buffer and cope with transcoding and streaming in a proper way. I use the latest version of the server with mencoder.