LIkewise, I have a mac mini belonging to a client and I told him to compress ( "create a new version" of his video library) he said all items greyed out. I collected it Friday , sure enough all his m4v with drm and his mp4 ( without DRM) will not allow him access to create a new version. I dragged one his films into my account. Authorised the account and it plays etc, the create new version option is there for my whole library bar this film. I am tempted to strip out the DRM but I dont know if it will resolve. I would love to hear from Apple !!!!! or someone older/ younger but wiser what may be the issue.
Regards
PC