This module will need to have public IP to your development server, once you submit a job then Zencoder with postback some info to you once conversion is completed, then only autothumbnail and status update in the database will happen. If your developments machine doenst have publish IP go to video/plugins/video_zencoder/inludes/zencoder.inc file and go to line 149
149 : // $url = $base_url . '/postback/jobs';
150 $url = 'http://url/of/drupal/site/postback/jobs'; //this url must be accessible from the public location.
What is Zencoder?
Web-based encoding software as a service, designed to quickly convert any video into web and mobile compatible formats.
Who is it for?
Web sites and applications that accept uploaded videos, and need to encode them to standard formats.
Why use it?
Building, maintaining, and scaling your own encoding solution is painful and expensive. Just ask our customers.
Features : zencoder.com/features/
How to configure Zencoder with the Video Module.
Go to Admin->Site Configurations->video->transcoders
Select Zencoder as your transcoder and type your email address to start using it.