I just saw MCE Video Encoder on xbox-scene and gave it a try out of frustration from trying to get transcode360 going and it worked perfectly first time, the video quality is also very good. It's similar to transcode360 in that it installs MCE add-ons and you open the files the same way in MCE or the 360 extender although there is one more step which is you start the encoder then play the file instead of just starting transcode and waiting for the video to start which never happened for me anyway. I kept getting time outs even after I set the default to 120 seconds.
Here is the link to the software and some screen shots:
http://www.lightningware.co.uk/software/freeware.html#4
cheers
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