I have the same issue also. I just download the Media Converter couple days ago. The conversion went flowlessly, but not the play back from the N800. A few things I should mention here. I encoded using the second best option, w/ 2 passes. And it play smoothly. I ssh into the unit, and run top while playing it. It appear w/ that setting, the system only use about 50-60% CPU at fullscreen. as I guessed, the CPU isn't the problem here. Also I notice that, playing video FS can make problem worse as it freeze more often. BTW, most of my converted video are music video. Mostly are under 10minutes anyway, but yeah it still freeze.