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I have an audio lag with most of my videos streaming from my PC to my Samsung UN40C5000QFXZA. I have it set for Samsung C/D/E, is this the correct setup?

I've read a bit about transcoding, but it's not making a lot of sense to me. I dont know what I need to transcode or where to make the changes. Any help is appreciated.

most likely due to the server being overwhelmed when transcoding.

you can try switching the the "generic profile" to see if your tv can play these movies without transcoding and see if that makes a difference.