Server side Transcoding?

Does atvflash (black) support server side transcoding? I have server with all my media with air video and a ps3 media server. Air video allows me to watch my movies when I’m on the go and the ps3 media server is for when I’m home. I’m looking to move my ps3 to another room so I need a replacement device for my movies for my family room. I don’t have the bandwidth to stream movies directly to that room without transcoding hence, the ps3 media servers was transcoding my 1080p movies to about 720p. My family room is a weird deadzone for wireless and wired connections to the room is not an option. Will I be able to do something similar with atvflash (black)?