How to set up the FFMPEG wrapper (and show the Output format dropdown menu)?

Hi:
I plan to set up a page for converting video format online by uploading a video (or using a url) and then download its converted version with target format using FFmpeg wrapper. I am really new for FFmpeg wrapper module, and I am not sure how to set up correctly this module and its dependent program - the ffmpeg software ( downloadable from http://ffmpeg.mplayerhq.hu/). I put the FFmpeg wrapper and the downloaded FFmpeg in their own folders on the same level of directory and using the "C:/xampp/htdocs/mysite/sites/all/modules/ffmpeg/bin/ffmpeg.exe" as ffmpeg path (this is on PC). Drupal site seems to accept the setting ( as the default error message of 'FFmpeg Wrapper could not find the path to the FFmpeg binary" disappears). But if I do a Test Convert File, The 'Output Format' dropdown menu shows nothing (I did site update to make sure). And then, if I click the Transcode button to try to convert a flv or mov file, it will always complain that:
"There were errors during the conversion!
There were errors during the conversion!
Errors found: The file could not be transcoded because this version of FFmpeg can not decode this kind of file"

So, I don't know what goes wrong: is the setting for the module side by side with the ffmpey folder correct? (Generally the wrapper module, like ckeditor would place the original software within the module folder, but I don't know for this module and there is no Read.txt file for instruction). Then, I am not sure of the path I used?
Please help and, if somebody can give me a tutorial link, that would be great. Thanks a lot, Hj.