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Yeah, I've had probalems with files not being added to the library which I solved in the same way as you by using their preferred naming convention.
I'm talking about videos that play fine on my PC in VLC, but don't play in the Wii web browser. I considered getting a Chromecast dongle to use instead, haven't got round to it yet though.
On the other hand, there's always the Amazon video service / Nutflox.
I have near 100% success. 90% seems low - I find that most problems are from naming conventions not being met, rather than encoding. Easiest way to test - renamed the file "cheers - s01e01.insert correct extension" and udpate the library.