Not encoding & Queque

So If I upload an flv then everything is fine. If I upload anything else it doesn't convert. I have tried .avi and .mp4. It says it has successfully uploaded but it never shows up. It is in the Inactive section in the admin section. When I click on it in the Inactive video section..the still loads but the video doesn't.

Also I have used Import Video in the admin section and have entered the info to grab a .flv from another sever. Does this mean I'm going to download it and convert it or an I just going to play it from the other server? It just sits and says Added to Queque...how do I get it to convert and/or show up for my users?