I convert to mp4 (x264) too. Its the same codec, but my bitrate is about 2000 kbits. It needs a downloadspeed of ~ 270 kb/s. I think your system can share this speed but the convert is to low bitrate for HD Video. My videos are compatible with your player and codec but i dont need convert the video again. Could you stop the convert to my account? I think you will safe a lot of VPS Power.

Edit my Settings:

Video-Bitrate: 2000 kbits
Audio Bitrate: 160 kbits
Video format: Mp4 (x264)
Convert Process: One pass encoding
Bitrate ~ 2160 kbits ~ 270 kb/s

Here are my Settings i use with my Convert-tool. It would be nice if you could stop autoconvert or just convert to non-x264 videos. I mean, my vps 8x CPU convert this file from mkv to mp4 in 2-3 houers. If it is ready, i will upload via ftp server this file (about 1,2 - 1,8 GB). It would be extremly fail if you server will convert this file again to the same settings. So it would be nice if the server would do nothing to x264 videos. So i dont have to wait and could use the file directly, additional your server dont have to convert this file and safe CPU and HDD Power for other operations.