rboy1, thanks again for your time.
I used a program called LockIT and it told me the files I can't move into MCE are not locked by any process.
I also followed a tutorial to ensure that whole folder and all children are all set to "allow" for all possible users.
I can delete the file, move it, play it from it's NAS location, so it doesn't seem to be locked in a process either.
From what I see, MCE says a file is locked in another process but LockIT says it's not.
For now i'm moving the files little by little from the NAS to a local drive where MCE does a good job on the convert and move back to the NAS... unless you have any new ideas...