The only thing that you need the software loaded for is basically YouTube support. It will stream directly from your NAS and Windows Home Server. You will need to create a place on your NAS that the EVA has write access to so it can save it's library and config files or load the included software on a pc, but the pc will need to be on or be able to "wake up" if it's sleeping when the EVA tries to access it.
Also, you do not need to use the Media Connect from WHS either, just use the default Music, Photo and Video shares directly. I currently run WHS on an old pc I had lying around (bought OEM version from NewEgg.com but does not include any support from MS) and just point the EVA to the shares. You do need to create an account on the WHS for the EVA and give it a password so you don't have to enable the "Guest" account.
As far as converting you videos, what format are they in now? They may already be supported in the latest firmware.
"everything will be ok in the end. if it's not ok, it's not the end" - unknown
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