According to website http://wiki.openpli.org/comparison Solo SE supports limited Transcoding but looks like not in OpenPLi.
According to website http://www.vuplus-community.net/board/threads/vu-solose-tested-for-you.18506/ Transoding was tested in the image is Black Hole and works fine.
root@vusolose:~# ls -l /proc/stb/encoder
dr-xr-xr-x 2 root root 0 Oct 7 12:37 0
-rw-r--r-- 1 root root 0 Oct 7 12:37 enable
-r--r--r-- 1 root root 0 Oct 7 12:37 enable_choices