Thanks for the impressions. That AirTight sounds like a very interesting cart, though I'm afraid it must be damn expensive, isn't it? It could be a candidate to replace the Shelter when it (hopefully in a long time) dies.
Try Virtual Dub Mod 1.5.10.2 (build 2540/release) which is a modification of the "normal" VDB. A friend recommended it to me. It's available from here and managed to convert some of those "difficult" videos for me. You can enqueue several tasks after editing (if needed) and setting the codecs preferences.
Funnily enough when I've used the gift option to send funds, the fees have been charged on my side, so I don't see Paypal needs to flag or claim, they get their money whatsoever.