Can't get transcoding to work at all

I have used Serviio without transcoding for a long time and everything has worked fine. I now would like to watch some flv and other files which need to be transcoded. I have enabled transcoding in the console and selected my own transcoding folder and ticked "Best Quality". Nothing I have done has made the thing transcode and I still cant watch flv's.

Here are my details.

Hardware:

i7 930 PC, lots of RAM, lots of HD, 4 cores, no hyperthreading
Samsung BD-C5500 Blue Ray/DVD/CD/DLNA box
Samsung UA40B6000 TV

Software:

Windows 7 Ultimate SP3
Serviio DLNA media streaming server v 1.3.1 (rev. f1fc8bc55657) Pro version. (Paid for it for a "thank you" and also to see if that might make things work better.)
ffdshow 1.3.4500

The console has discovered a "Samsung TV / Player (C/D/E/F-Series)" device with the profile named the same. The profiles are untouched from install.

I have added a small folder of captured videos to the library and they have been correctly cataloged and are visible on my TV, but there is nothing in the transcode folder.

I have attached the log of the session to start, capture video and close Serviio from a clean database.

I have done lots of searches and looked through the documentation and this forum but I still have no idea what I am doing wrong and would very much appreciate if someone could help me and point out the absolutely stupid, dumb things which I am undoubtedly doing.

Thank you all in advance.

Joe M.
Australia

(PS: The Vuze DLNA server has no problems transcoding but I'm not too keen on the result and I like Serviio much better.)

[zip]

The log doesn't show you trying to play the file. Try it again and post the log again, pls.

Also provide ffmpeg -i of the file you're trying to play.