Newbie questions - Online content

Hi all - I have Serviio installed on a laptop all hooked up to my wired network.

TV is a Panasonic VT series Plasma also on wired network.

Streaming media stored on the laptop is no problems - even super high bitrate HD is fine.

Questions:
For online feeds, where does Serviio store the data, or does it not store it all? - i.e. does it just act as the 'conduit' to access the online content in real time?
Reason I ask is when I set up online content to pull down HD feeds, I get stuttering even though the laptop is 'doing nothing', i.e. CPU is 4% or less and there is very little HDD activity.
I assumed the content was stored somewhere, but if it's pulling it in real-time this makes sense as my internet connection is fairly slow - 2 m/bits or so

Examples:
This feed is fine with no stuttering: http://revision3.com/hdnation/feed/mp4-large

This one stops and starts: http://revision3.com/hdnation/itunes/mp4-hd30

Unrelated question, is it normal for there to be 2 'serviioservice.exe.' processes running ? (Windows system of course)
Both are running under the system account but one is using a lot of memory and the other is not..

[DenyAll]

Stuttering will almost certainly be caused by your slow internet connection. You can test this by streaming to your PC direct using VLC or similar program.

Yes - two 'serviioservice.exe.' processes running is normal.