You play it off your media server you say. Do I understand you right that this is networked to two other computers?
Also I have seen problems with dragging and dropping - what happens if you open the ISO from the menu?
What happens with other file formats (mp2 mp3 vob flac what have you)
Sorry for the late answer - I hoped someone with experience with a media server would answer
And a bit more clarification, you have Compiz enabled on a media server? Try disabling that, first.
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