Ok Run that command and this was outcome with ssh:
ERROR: Permission denied - /home/xxxxxx/public_html/flvideo/11994622201329115951.flv
ERROR: /usr/lib/site_ruby/1.8/flvtool2/base.rb:259:in `initialize'
ERROR: /usr/lib/site_ruby/1.8/flvtool2/base.rb:259:in `open'
ERROR: /usr/lib/site_ruby/1.8/flvtool2/base.rb:259:in `open_stream'
ERROR: /usr/lib/site_ruby/1.8/flvtool2/base.rb:238:in `process_files'
ERROR: /usr/lib/site_ruby/1.8/flvtool2/base.rb:225:in `each'
ERROR: /usr/lib/site_ruby/1.8/flvtool2/base.rb:225:in `process_files'
ERROR: /usr/lib/site_ruby/1.8/flvtool2/base.rb:44:in `execute!'
ERROR: /usr/lib/site_ruby/1.8/flvtool2.rb:168:in `execute!'
ERROR: /usr/lib/site_ruby/1.8/flvtool2.rb:228
ERROR: /usr/bin/flvtool2:2:in `require'
ERROR: /usr/bin/flvtool2:2
I had disable fltool before and still no go:
I get this when disabled after trying to convert:
Video id: 1

Find video duration - START

Duration (ffmpeg-php): 23


DURATION: 00:23

Create Thumbnail - START

Create Thumbnail with ffmpeg-php - END

CONVERT COMMAND: /usr/local/bin/mencoder '/home/xxxx/public_html/video/hendbaby.avi' -o /home/abeez/public_html/flvideo/11995061141297215868.flv -of lavf -oac mp3lame -lameopts abr:br=56 -ovc lavc -lavcopts vcodec=flv:vbitrate=500:mbd=2:mv0:trell:v4mv:cbp:l ast_pred=3 -srate 22050 -ofps 24 -vf harddup

################################################## ##

Array
(
[0] => MEncoder dev-SVN-rUNKNOWN-3.4.6 (C) 2000-2007 MPlayer Team
[1] => CPU: Intel(R) Pentium(R) D CPU 3.00GHz (Family: 15, Model: 6, Stepping: 2)
[2] => CPUflags: Type: 15 MMX: 1 MMX2: 1 3DNow: 0 3DNow2: 0 SSE: 1 SSE2: 1
[3] => Compiled for x86 CPU with extensions: MMX MMX2 SSE SSE2
[4] =>
[5] => success: format: 0 data: 0x0 - 0x119a00
[6] => AVI file format detected.
[7] => [aviheader] Video stream found, -vid 0
[8] => [aviheader] Audio stream found, -aid 1
[9] => VIDEO: [cvid] 136x102 24bpp 6.000 fps 209.7 kbps (25.6 kbyte/s)
[10] => [V] filefmt:3 fourcc:0x64697663 size:136x102 fps: 6.00 ftime:=0.1667
[11] => ================================================== ========================
[12] => Opening audio decoder: [pcm] Uncompressed PCM audio decoder
[13] => AUDIO: 22254 Hz, 1 ch, u8, 178.0 kbit/100.00% (ratio: 22254->22254)
[14] => Selected audio codec: [pcm] afm: pcm (Uncompressed PCM)
[15] => ================================================== ========================
[16] =>
[17] => Exiting...
)

################################################## ##

Return value: Exiting...

Convert Error or converted video is less than 1 kb in size, try upload a big video. If that do not work, verify convert command works on the server.
Any ideas, also I am not getting e-mail of replies here left, even though Notify is checked!
Very frustrating the whole episode.

Alan