I have a quicktime clip embedded with 5.1 audio (Little Indian, 5.1 (L R C LFE Ls Rs), 48 kHz. This seems to crash the SMS server (ToDo Windows exception). The documentation doesn't say, but can SMS play 5.1?
Looking at the about box: Transcode manager is version 4.4.208 with a build date of 11/24/2011