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I'm having the same issue. Video is being processed for uploaded videos, but not for ftp videos.

So I have been playing around with this a bit. I have been able to upload a large file (over 60MB) and it processes the thumbnails and videos perfectly. the exact same file, which already existed on the server - which is why i preferred ftp, does not transcode properly when using the ftp field.

I am migrating from another module which stored flv files on the server. I have about 50 of these so being able to use FTP is much preferred, but if that is not possible i suppose i could download them all and re-upload them.

I'm having the same issue, even when selecting convert on save I get this message and the videos is never converted.

After a couple of hours of pulling my hair out, I came to the conclusion the Video module is at fault. I installed ffmpeg correctly and confirmed ffmpeg it worked through shell and just converting videos on the fly was not working.

[Edited: Removed some useless information pertaining to my investigation of the causes...]

Unfortunately, I don't even know where to start looking to fix this. I'm off to try the dev version...

[Update]
Dev version is even more bugged than this one. (To be expected of course). Just to save anyone else the trouble....

@augiem dev version is redesigned to support multiple video conversion but still only work with Zencoder. The latest stable version is working fine.

@heshan.lk

Unfortunately the latest stable isn't working for me (or the other posters). I think I found the source of my problems. No conversion is happening at all when "Convert video on save" is checked. (I verified by inserting a bunch of watchdog code in various functions throughout). I did get it to finally convert but only on cron by checking "Use Drupals built in cron." in Site Configuration -> Video -> Cron Settings. However, I want to convert the videos when uploaded, not on cron.

Thanks for the reply!

@augiem,

The optimal way is let cron to convert videos, just add cron job and see how it goes, I can rem there is an another issue on Convert on Save is not working. I will debug and fix it if any issues.

@heshan.lk

I figured it out, though I'm not 100% sure my fix is the best way to do it:

video.module, line 386-387:

if (isset($element['data']['convert_video_on_save']['#value']))
    $convert_video_on_save = $element['data']['convert_video_on_save']['#value'] || $file['data']['convert_video_on_save'];

I changed to:

    if (isset($element['data']['convert_video_on_save']['#value'])) {
      if($element['data']['convert_video_on_save']['#value'] || $file['data']['convert_video_on_save'])
        $convert_video_on_save = true;
    } elseif($file['data']['convert_video_on_save'])
      $convert_video_on_save = true;

For some reason, $element['data']['convert_video_on_save']['#value'] is never set, so it skips over and leaves $convert_video_on_save = false and it never does the conversion.

@augiem,

Nice work around, I will keep eye on this.