avconvert: source file not found

Hello there,

I searched around here and have found no one get this same error with avconvert (a new command that lets you convert video files in os x lion, the same one used when you right click a video and choose "Encode selected video files"). Whenever I try to do this, convert a video file, I get the same error message: "avconvert: source file not found for source file://localhost/Users/(...) avconvert:failed to create an Export Session. Check setup."

I have tried using this service/command through automator, finder, and terminal, and all return the same error.

I think it's a bug in lion but please someone confirm, and apple fix.

Regards,

Firas A.