I love Air Video - and it seems like the pre-conversion would go hand in hand with downloading the files to the iPhone for later viewing. Usually streaming is fine, but if I know I'm going to be on the Edge network, or on a plane with no wireless, I'd love to be able to pick, convert, and download a couple movies from my home computer.
Any chance of this happening in the future? Is there a restriction by Apple from doing this to avoid competing with iTunes? This is the one feature I'm really missing from both Air Video and Orb Live. (Kudos to you guys though.. Air Video has been much more stable on my 3gs than Orb Live, and the file system is easier to browse.)