So if I understand this correctly, in order to stream the tunes over
the 'net I need to check the setting to make AAC files get encoded as
MP3.  Fine.  However, does this mean that music going to the Roku will
ALSO get encoded as MP3, or does the server have some smarts to keep
the files in their native AAC format since the Roku can accept AAC??

No, transcoding is a per client setting.

--

Michael

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