GS-Patrick, from debug log, the convert command is

Code:
/usr/local/bin/mencoder '/home/bolek/public_html/video/soloblondstrip.wmv' -o /home/bolek/public_html/flvideo/11865838951277128563.flv -of lavf -oac mp3lame -lameopts abr:br=56 -ovc lavc -lavcopts vcodec=flv:vbitrate=500:mbd=2:mv0:trell:v4mv:cbp:last_pred=3 -srate 22050 -lavfopts i_certify_that_my_video_stream_does_not_use_b_frames
Run it on SSH prompt, then check if the file

/home/bolek/public_html/flvideo/11865838951277128563.flv

is created, if yes, it should work. You need to upload a new file (if you done conversion as root, it may create permission issue, better do a reupload).

Post result of

Code:
ls -l /home/bolek/public_html/flvideo/11865838951277128563.flv
after running the conversion.