This seems to be a common problem, and one where I think that one size does not fit all.
Some Twonkymedia installations are low power but on fast networks, so are better sending the full image (my network setup falls into this bag), others are on slow Wifi networks with fast processors, so are better of rescalling!
Clearly what works for one is bad for the other, there is no comfortable medium.
Editing the clients.db is only a temporary solution, and it gets updated every release, and means end users have to hack it each time. It's almost like there needs to be a global setting that determines what class of server each server falls into and sets the rescalling appropiately...
Please note: Moderators here are voluntary and do not work for PacketVideo or Twonky, please do not attack us. Any posts are personal opinion, and may not be those of PV/Twonky.