I tried it with two video files: a .VOB file (decoded from a DVD with DVDdecrypter) plays fine (at least the 30 second preview, I don't have the time to encode Kill Bill 2 entirely). A Divx file (Lord Of the Rings, extended edition), which I "found" , appeared to encode well, but could not be played on either the PC (Windows Media Player) or on the 770. Both gave a generic error. With the previous version of Media Converter I could encode Divx files without any problem (although the ones I had for my SE P910 were a bit grainy on the 770, they played flawlessly after passing through MC).

As I am converting most of my old VCR collection into Divx files, not being able to convert those to the 770 is a bit of a problem for me.