So I'm not sure what could be affecting this but I'm running an Intel mainboard with dual Xeon 2.4 Ghz processors (4 total cores) and 2GB of DDR2-667 ECC memory. In the PlayOn settings window I get a red CPU performance reading. The server runs Windows Home Server Power Pack 2. The Windows Firewall is enabled but the PlayOn Settings and MediaMall Server programs are exceptioned so it should not have an impact. The only other security software is Symantec Antivirus. Despite all of these even when processing a video I never see above even 15% at the MOST on CPU utilization. Any ideas?

The performance reading is only an indicator, and not an absolute. If PlayOn performs well, then you can effectively ignore the status reading. Did you get this result by pushing the "Test" button or did it show this by default?
PlayOn Administrator
It came up like that on its own and when I pressed test it came back with the same status.
If you try the Max performance setting, do you get good playback? If so, you're fine.
PlayOn Administrator
I'm getting spotty playback. On Hulu its great. On Netflix its touch and go. The first video I try to playback lags, freezes, and ends early. The second and on video some are ok some are laggy. No issues at all with Hulu or any media stored on my server locally.
Have you tried configuring your Symantec antivirus to give full local and online access to MediaMallServer.exe? If you have the option, you may want to consider temporarily uninstalling it, rebooting, and seeing if PlayOn performs better.
PlayOn Administrator
Symantec Antivirus isn't blocking any programs from access to local resources. I am not comfortable uninstalling my antivirus program.
It's highly conceivable that your Symantec product is causing PlayOn to perform so poorly. Are you sure you have properly configured it to allow PlayOn full access?
Please send in a support ticket through PlayOn Settings so we can take a look.
PlayOn Administrator
I have a similar system with dual 2.4 GHz processors same as original poster and 12 gigs of RAM. the system has no firewall or security software on it. when playing any media i have to force it to medium quality at best otherwise i have major buffering issues. this is for online and local content.
i had to resort to running the online side of the program on my desktop with a phenom II CPU and use a completely different transcoder program for local content which displays it just fine at full quality.