Twonky - Readynas600 & ps3 = Slow dlna

I fear I may have made a mistake investing in the Twonky software.
I was testing it using a couple of laptops and an older Philips Streamium device over a wireless network (g) and it was working alright.
It's no faster than the dlna that comes with the readynas600 on the Streamium, but no slower either - and it was working really well on the laptops - so I splurged out and bought the lot.

Promises of transcoding of both audio and video seduced me - alas - I cannot get it to work through the dlna protocol.
Indeed subsequent additional attempts to get acceptable performance using ps3s have proven that it's all a bit poo really.

Opening the twonky server is VERY slow - minutes pass staring at the little ps3 "please wait" circle..before I'm presented with the choice of displaying folders or all the other ways of sorting the media.

If I play the waiting game I will eventually be let in to my media - but the performance during playback is absolutely atrocious with drop-outs in video and audio alike.

I have two ps3s in the household, it's the same on both.
Both are using 1000mbit wired connections through 1000mbit switces.

I know the network ISN'T the problem - as when I access the twonky server through the web-interface on the ps3 it's workign great.
Instant content listing, near instant playback and no drop outs during play back.

I have disabled the automatic scanning of media libraries in Twonky.

Raidator version 4.1.7

Disk 1 WDC WD20EARS-00S8B1 1863 GB , 36 C / 96 F , Write-cache ON OK
Disk 2 WDC WD20EARS-00S8B1 1863 GB , 38 C / 100 F , Write-cache ON OK
Disk 3 WDC WD20EARS-00S8B1 1863 GB , 37 C / 98 F , Write-cache ON OK
Disk 4 WDC WD20EARS-00S8B1 1863 GB , 36 C / 96 F , Write-cache ON OK
Fan 3 2445 RPM OK
Power 1.5v 1.552 v OK
Power 2.5v 2.480 v OK
Power 3.3v 3.328 v OK
Power 5.0v 5.049 v OK
Temp 1 32 C / 89 F [Normal 0-60 C / 32-140 F] OK

Version: 6.0.34
Cache memory: 3440 KB
Last database change: In Progress...
[+...]twonkymedia/db/5421_temp_playlist.wpl
Music tracks: 404
Photos: 384
Videos: 4576

License information: The Server is registered.
Registration key: .......(Censored)
Server uptime: 0 days, 0:53:13 hours
Server build date: Jun 23 2011 p0
Server restart pending: no

Network Interfaces: 127.0.0.1
192.168.0.3

I recently restarted so the media counts aren't correct at all!
Also I can't for the life of me figure out how to stop twonky from advertising as 127.0.0.1


Any help, similar experiences, comments..anything really.. is appreciated..