We'll be fixing the MP4 transcoding to make it better, but Sony does not play MKVs, so Serviio should be transcoding those files as well. Perhaps it's transcoding them to MPEG2 which does allow FF/REW, but reduces quality.
The Sony BDPs do not display thumbnails - this is a limitation of their firmware and we cannot fix it, unfortunately. Probably a future firmware update will fix this up and then thumbnails will start working.
With the Chinese characters - do you mean the actual file names or just the display titles?
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