If I take the same file and run it through Hndbrake again deleting the AC3 option leaving only the ACC 160 bitrate the file plays fine. Also with 256 bitate but leave the AC3 stream in and it's static.
I have contacted Roku Support on Twitter a day or two after my original post above, they responded by saying their devs were aware of the issue and are working on it. They keep emailing me about closing the support ticket they apparently entered on my behalf even though the issue has NOT been solved.
The ONLY reason I went with Roku years ago was to access my local network via DLNA (Roku Media Player) for my recorded and transcoded media from Over The Air using Handbrake's *Roku* preset... now all my hundreds of files are unplayable and still no action by Roku.
Seems all they care about now us pushing streaming apps including their own channel for revenue.
Thank you for the audio information about running through Handbrake. I have hundreds maybe thousands of files that I would have to run through Handbrake! It will take a very long time to do this. Are the developers at Roku even paying attention to this forum?!?!
I think that we have been forgotten. Maybe it's time to switch to a different device and NEVER buy a Roku product again.