Transcode 360 was unable to transcode [path to folder]

I am using Transcode 360 version 1.6.3 on Vista MCE to stream backed up movies (DVD) to a Xbox 360 extender. Many movies work, but many movies do not. The one's that don't work display the error 'Transcode 360 was unable to transcode [path to folder]'.

The T360 log file shows this for the error portion (on Vista the log files are located at 'C:\Users\Public\Transcode360\Logs'):
2/15/2008 2:27:16 PM *VRB* MEncoderTranscoder loaded
2/15/2008 2:27:16 PM *VRB* VLCTranscoder loaded
2/15/2008 2:27:16 PM *VRB* Using optimal resolutions
2/15/2008 2:27:16 PM Spawning: "C:\Program Files\Transcode360\Wrappers\MEncoderTranscoder\mencoder.exe" -quiet -delay 0.5 -oac lavc -srate 48000 -af lavcresample=48000 -of mpeg -mpegopts format=dvd -o "C:\Users\Public\Transcode360\TranscodeBuffer\TheMarsh.360" -ovc copy dvd://1 -dvd-device "\\Vista-mce\G\Movies\TheMarsh\VIDEO_TS"
2/15/2008 2:27:31 PM *ERR* Transcoding error:
2/15/2008 2:27:31 PM *ERR*
WARNING: OUTPUT FILE FORMAT IS _MPEG_. See -of help.

2/15/2008 2:27:31 PM *WRN* MEncoderTranscoder unable to handle request: \\Vista-mce\G\Movies\TheMarsh\TheMarsh.vol
2/15/2008 2:27:31 PM *WRN* Failed to start transcoding
Even though the path is a UNC the files are local to the MCE machine.

I think I found a solution to this problem. I downloaded the MPlayer 1.0rc2 Windows version of mplayer from http://www.mplayerhq.hu and replaced the mencoder.exe file located at C:\Program Files\Transcode360\Wrappers\MEncoderTranscoder with the newer one downloaded from the mplayerhq site. I then ran the configuration utility and double checked that MEncoder was the selected encoder and then stopped and started the service (not sure if that was necessary). Now, all the movies that would not play before will play. These are all .vob files from backed up dvds. Each movie has its own folder, with the .ifo and .vob file contained within a Video_TS subfolder.