Your preaching to the converted! But I don't want to get into yet another argument with other DV supporters who may be reading this about the acceptability of alternative SD codecs to DV for playback purposes.
If your real concern is the time it takes to convert files, rather than an almost religous belief that you will only watch DV, then you could consider a transcoding UPNP server. The problem there is DV requires a lot of CPU power to trancode it in non-real time, never mind in real time. I doubt the results would be watchable to most DV users.
This is supposed to support DV-AVI as an input format for transcoding.
http://www.nero.com/enu/mediahome4-introduction.htmlHere is the manual:-
http://ftp6.nero.com/user_guides/mediahome/NeroMediaHome_Eng.pdfYou should "try" before you "buy". If it requires DLNA it won't work with the med500.
I have tested it and it does both work with the med and convert DV in real time. I couldn't tune the quality using the Trailware version, which is limited to mpeg2 transcoding until paid for.