So before I go down the rabbit hole trying to get something to work I was wondering if anyone knew of a way to distribute transcoding work to multiple machines? I briefly looked at how plex starts a transcode and it seems like it would be easy enough to make a dummy exe that passes the arguments to a remote machine and streams the data back into plex over the network. Obviously some extra functionality could be put in to load balance or some other stuff. Anyway if something already exists awesome, otherwise I guess I might write something in my free time. If there is any interest here I can post what I come up with.
PS Actually now that I'm thinking about it, it seems like you could also force bitrates or at least put a cap on them. Though that wouldn't have per user controls so not sure how useful that would be.