Well, I've made some 'progress' of a sort. I noticed that when I convert without using the Turbo H.264 the encoded files are DIVX, not H.264. Also, while messing around with settings and getting Popcorn to hang, the dump shows the DIVX library loaded.
Any thoughts on this? I tried to force Popcorn to use the 'H.264 preset' rather than 'Apple TV', but STILL get DIVX encoding. This does not make sense.
Comments/suggestions appreciated as always.