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Thanks, but I think you and @Velocio are contradicting each other here regarding the transcoding. Unless I'm missing something, by 'merely read file' do you (Velocio) mean a direct play without any transcoding (in the case of a local server and client).
I understand from other people's issues here that wireless bandwidth can be an issue in that case also, but I hope to get an Ethernet connection between client and server, though that would mean a different client from the standard Roku.
Depending on the Roku and the media it may need to do some transcoding. Have a look at the formats that your videos are in and Google to see what it can direct play. It may not be able to cope with 4k or the latest format for instance (but not an issue if you don't have any 4k).
If you decide you need more power for Plex you can always add something like an Intel NUC later for not much money