Always Transcode

I have a RGH xbox, I am not allowed to connect to Xbox live, if I do, I will get banned immediately. However I do have all the needed updates and media updates installed, but no matter how hard I try I am unable to get the xbox to play AVI via streaming without live service, but I can play ohh say a Metroska without problems.
I have, in the past, used PlayOn to stream media. It would transcode everything I streamed to the xbox. I want to set up a profile for my Xbox 360 so that it will Always transcode every piece of content. I have entirely way too many videos to start converting formats, especially if I have another program that will do it for me, but I would really like to use Serviio. This program is responsive, allows me to fast forward and rewind (a feature I was unable to use in PlayOn, TVersity, or the likes), and best of all, FREE. I do plan on donating as regardless I think this project should succeed.
I have read through the Transcoding Configuration pages but I'm afraid I still don't understand, could someone a little more experienced help nudge me in the correct direction? All help is greatly appreciated!
I understand there will be quality loss, etc. But to be able to use my Modded box as my streaming service would be really beneficial, I'd even be able to use a box in my bedroom where there's no internet if I can get this working right
I have tried other profiles but then the server does not show up on my 360
I have, in the past, used PlayOn to stream media. It would transcode everything I streamed to the xbox. I want to set up a profile for my Xbox 360 so that it will Always transcode every piece of content. I have entirely way too many videos to start converting formats, especially if I have another program that will do it for me, but I would really like to use Serviio. This program is responsive, allows me to fast forward and rewind (a feature I was unable to use in PlayOn, TVersity, or the likes), and best of all, FREE. I do plan on donating as regardless I think this project should succeed.
I have read through the Transcoding Configuration pages but I'm afraid I still don't understand, could someone a little more experienced help nudge me in the correct direction? All help is greatly appreciated!
I understand there will be quality loss, etc. But to be able to use my Modded box as my streaming service would be really beneficial, I'd even be able to use a box in my bedroom where there's no internet if I can get this working right

I have tried other profiles but then the server does not show up on my 360
