Stream video from PC to iPod Touch with AirVideo

Just came across yet another marvelous free app for my new iPod Touch called AirVideo.
So, instead of loading all of the movies you want to watch directly onto what might be limited HD space on the iPod (I have 32 GB), you can actually stream the movie from your PC or Mac.
I tried this out on my MacBook 6,1 streaming to my iPod 3G. AirVideo server is installed on the Mac and AirVideo goes on the iPod.
Setup is extremely simple and works perfectly or at least it did for me.
What's even better is that you don't have to convert the video to m4u before streaming. AirVideo converts it on the fly. I tried this out with a 108 minute .avi movie and it worked absolutely perfectly.
The only slight problem I had was in getting the initial communication between the iPod and the Mac. However, once established, streaming went through without a hitch.
My test was between two machines on the same network at home. However, Air Video also works over the Internet. I'm going to have to try this soon as this could be very useful.
And there's even more............
Almost all of my movies and home videos are in the .avi format which have to be converted to m4u. I used to use the free DVDVideoSoft converter. Now this never gave me a problem but it took 2-3 hours to convert a typical 1.5-2h movie. Now, Air Video can do the same conversion in less than 20 minutes.
Strangely, even though the .avi was on my Mac and the finished .m4u ended up in the same place, the conversion had to be done from the iPod which was usb-connected to the Mac. I really don't understand why but it's a very, very minor inconvenience.
This is a great app.