That's pretty sweet, didn't know there were webservers that transcode to flv that easily.
Youtube works great for me over wifi on the Wii, but their player buffers a lot and then plays.. is that how that webserver was working?
here's the webserver I tried out: http://www.weezo.net/
I'll try some youtube tonight, this web-server was playing the videos pretty immediately, not much buffering at all, which is probably the problem.