QUOTE(YeSoD @ Feb 9 2006, 05:43 PM)

The fact is, as far I can tell from my tests, that while WME can *open* the videos using any decoder that works within Windows Media Player, it does not when using it through the Trancode360 service.
Personally I wish that was true as that would mean there was some way of improving compatibility but you can't say that as a fact until you have manually set up a broadcast using WME on port 8080. To setup that test you need to create an .asx file ala /mceDivX360 and point it to WME running in a controlled environment, no MPEG4 based codecs (except for WMV) installed other than the one you're testing. Run the GSpot codec information appliance to generate a list to be sure.
T360 can open the file, but you see WME barf when it PreparesToEncode. Also bear in mind T360 is running as a service, with different permissions (if you used a "local system" account) than the logged in user, so its possible some codecs don't like that environment. So when running compat. tests try the console diags mode which runs as an app instead of a service.
There are so many PC configurations out there that its impossible to say anything with a great deal of certainty without going through weeks of testing. I tested T360 for two weeks before releasing, and agreed I didn't dabble around with codecs v. much, but my experience was whenever I deviated from DivX 6.1 (minus toolbar) there was trouble. Also look at the /mceDivX360 project - the author comes to the same conclusions.
Theres definately more work to be done in this area, but I do know for a fact that I had to disable ffdshows mp3 support when I had both DivX and ffdshow on my PC; so be aware that it might not always be the video codec thats the problem.
I would recommend that people always start with the simplest config we've been pushing (DivX 6.1 minus toolbar) and then once they're happy start experimenting.
That said I'm looking forward to reading more of peoples findings because it'd be great to find out others that work, if not to get to the heart of the codec compatibility question.