That's strange. But "hundreds of megs"? I freak out if I have under five gigs available.

I could have sworn there was a way to do two-pass encoding... I'm guessing that has to be done in the settings for the encoder, which it auto-selects for you most of the time, and it doesn't seem to give you access to the encoder options. I guess that's something for the next version of the software

I haven't had errors like you're getting. I've sort of fallen back on this program because it's all I need to transcode almost anything into almost anything else. I'm going to start using it for making flv files for my website.
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Matt