I downloaded 1.0.6 this morning, and must say that it's superb - great job Derek.
One thing I noticed is that 1.0.6 will only convert dvr-ms files now, although a previous version I was using (not sure which) would also convert mpg's if dropped into the watched folder. Has this functionality been removed on purpose? I found it very useful that I could convert some old (large) mpg's with H.264 and produce small files of excellent quality.
Thanks and cheers