Before getting into the why, quick question regarding the original issue here. Can you give me an example of the syntax to convert an entire directory of .ts files to .wtv, including metadata?
With the CableCARD restrictions being eased up, I'm giving serious consideration to moving back to WMC. This past weekend I spent some time pulling my HD-PVR off of my SageTV rig and putting it onto a decent rig running Win7 using DVBLink. I put an old Avermedia MCE 1500 in there for analog cable channels and then installed the HDHR on it. Surprisingly enough, after the install was done, I went downstairs, fired up the 360 as an extender, and everything just plain worked. Using firewire for channel changing on the HD-PVR it's pretty smooth.
I'm going to test it for a while before making any rash decisions, but if Saturday and Sunday were any indication, I might be buying a CableCARD tuner sooner than I would have ever expected.