Raz,
Just so you know more about my setup, and you understand where I speak from:
I, too, have my own Asus RT-N66U and Motorola DOCCIS 3 modem. They are connected to a CAT5e box in a bedroom closet over near the center of the 2-story house. This gives me best coverage, although the closet wall the antenna face is one/two layer sheetrock to house center. I have four room walls throughout house with Ethernet ports built in walls (each have network switches connected to them, so many/most all devices are wired, not wireless). Because of house size, I use three WD range extenders (RE) to handle fringe areas for wireless; one set for 2.4G (mostly for Amazon Echo, Dot, that handle only audio – no video. Another RE is for 5G (so we can stream video from anywhere in house to iPhones, iPads and Kindle tablets; all our phones/tablets are on the 5G signal, as 2.4 G is rarely used except for Echo devices). I have an Android app on Kindle for measuring Wi-Fi strength, channels router is on, etc. (called Wi-Fi Analyzer) that helps fine-tune Wi-Fi. No such app for iOS devices, although there is an app for computers called inSSIDer that can do same task on a laptop. I suggest you stream to all mobile devices when using 5G anywhere. I even have the mobile devices “forget” the 2.4G signal so I continue to stay on our 5G. Get range extenders if necessary for best 5G results.
Streaming MKV files made from BDs: I can do this successfully to WDTV that is wired to network, but also to FireTV stick that is wireless downstairs/upstairs. I even have a separate RE on a different 5G signal for just FireTV and Chromecast devices connected directly to TV (a 2010 model 54" Panasonic plasma, 1080p model. No problems streaming to them this way. BTW, we access Netflix via a Roku 2 which is also wired to network; not wireless.
For making MKV files, I don’t make them from DVD ISO files, the ISOs just play from NAS to WDTV, and it does the processing and on to TV. I only make MKV files for WDTV from very few BD discs I have (files are gigantic). I use Handbrake to make “iPad” m4v files for the mobile devices from either ISO or the BD MKV files. All work well streaming to mobile devices and FireTV or Chromecast. I do not usually use the iPad files for the TV; I use the original (parent) files for the WDTV/TV display.
KODI is well regarded software that can be installed on various devices other than the FireTV. Installing on a FireTV takes some special instructions, and there are posted videos of how to do it. I found that even those instructions were not foolproof and had to come up with a modification last month to install it on a second Fire stick for new TV.
Quite a few people here have installed Kodi on a Raspberry PI3. Joey Smyth is a true believer of the RBP 3, so maybe he will jump in here. So far, I have not felt the necessity to add the Pi to my gadget collection – yet!
Kodi is not installed on the NAS; only Plex is. It would be nice if Kodi could be installed on the NAS! Kodi is not necessary for a WDTV, since it is a great decoder/media player. Problem is, WD apparently quit making them over a year ago and has remained silent about them ever re-appearing.
So, two of our TVs have a WDTV attached, so Kodi and Fire stick are not used to view our movies. The new TV in a guest bedroom does not have a WDTV, so is why there is a FireTV w/Kodi installed since it can do most of what the WDTV can do.
If I left one of your questions unanswered, let me know. I have given you detailed replies because you have apparently done you homework enough to ask
informed questions, appear to have the right equipment, and you show a genuine interest to get up and running with this task. Continue doing your research via Google on this topic.
Back in late 2010, I got a WDTV, and knew I needed to create a home network which I knew nothing at all about doing. But, being computer savvy, I dug in. I continued doing my research, got a network setup, and stayed a reader and later a participant, of this forum, and today I have every gadget working like it should and a great and functional home network. All it takes is sticking with it.