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I don't think having a firewall would be a problem. I have 3 firewalls running. One from my router, one from PC-Cillin, and Windows basic firewall.
If you set Windows Media Encoder to use port 8080, that's the same port used to access the net so if you can get online it should work.
To save yourself some trouble if the IP or LAN address that Windows Media Encoder doesn't work then just get your pc's IP address and just use that.
So it would be "http://1.2.3.4:8080/". Just be sure you're using port 8080.
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