I record TV with an HD Homerun Prime using another software package which names the files in a format that Plex likes, so they import after the recording is done. I'm using the Plex server on the Shield to connect across my LAN to where these files are stored. The files are MPEG2 .ts files.
It's my understanding that the shield can play MPEG2 with hardware assistance, so I would expect them to play back buttery smooth, but they don't. It looks like it is transcoding it to "Original", which on a 1080p show still seems to cause long pauses when I fast forward. If I lower the quality down a few notches, it seems to do a better job when I skip ahead, but still not like playing it back without transcoding.
But, why is it transcoding this at all? It should be able to play it directly with the hardware, shouldn't it?
Edit to add: I've tried setting Direct Play to Forced, but then it doesn't seem to want to play at all.