I have just started to play with webservices plugin and the streaming to a browser is great. Would recommend you try it on a wired LAN.
Next step is to get wireless working fully.

Has anyone got this going on there system?

The issue I have is with transcoding to reduce the bitrate. I need to convert H264 (and TS streams) properly. The normal mencoder transcoder will not work at all for MKV files and only for a minute  with TS streams before the picture freezes (sound continues).

Does anyone have the correct switches of TS streams and Mencoder,  or an alterntive transcoder that works with MKV?