When playing an MKV with AC3 via pass through, the video is stuttering, which means it has a lower frame rate (about 15fps I think). I tried the server on an Atom machine as well as on a quad core PC, but it didn't change anything.
The video was played on an IPhone 4 and IPad 1 - are those to slow? Is the audio conversion done on the mobile device?
Was waiting for the update for YEARS and got really sad when the video wasn't playing smooth. But besides this - you are doing AWESOME work!!!
By the way, for all those who are using Atom machines and don't want to convert MKV's that already have h264 video - try this:
Just converts the audio