When we try to do the upload it says 'Encoding...... x%', but it remains at 0% and then just stops. Tried with small clips as well... no success.

Hey Andrew,

I am really sorry for the delay of this reply,

The reason why you hitting this is because your path to FFMpeg is didn't set correctly, can you consult with your webhosting provider regarding this? Once configure correctly and after you save, it will show out extra option on that video setting page.

Thanks...
why did you go for FFmpeg and not the better maintained AVconv - https://libav.org/avconv.html?

ALSO:

On Ubuntu 14.04, ffmpeg has been removed and replaced with avconv.

http://askubuntu.com/questions/432542/is-ffmpeg-missing-from-the-official-repositories-in-14-04

also see: https://launchpad.net/~mc3man/+archive/ubuntu/trusty-media

Hey Andrew,

I am sorry for the delay of this reply,

The reason why we go for ffmpeg is because ffmpeg more widely used, If ubuntu-14-04 is not support ffmpeg, but you still can use ffmpeg through this compilation guide ( https://trac.ffmpeg.org/wiki/CompilationGuide/Ubuntu ).

By the way, I've tried to global search regarding this, then I found out ubuntu-15-04 already add back ffmpeg in their repository.
Reference link :
-> http://www.webupd8.org/2014/11/ffmpeg-returns-to-official-ubuntu.html
-> http://linuxg.net/how-to-install-ffmpeg-2-6-1-on-ubuntu-15-04-ubuntu-14-10-ubuntu-14-04-and-derivative-systems/

Perhaps you can consult with your webhosting provider regarding this?

Hey Andrew,

You're welcome, glad to heard your issue resolved and sharing with us that reference link.