Btw, I found a solution to the MKV conversion problem for Picazzo.
It was right in front of me and not knowing it until now.
All you need is a freeware program called tsMuxer and it takes only 5-10 minutes to convert MKV to TS while preserving all its original features: DTS audio, built-in multiple subtitles, resolution, audio and video bitrates, etc., etc.
This conversion works on the Picazzo and better yet, no more audio and video out of sync issues and Jump-To-Time is instant even playing it across the network.
Two noticeable issues though:
1) Size is slightly bigger than its original MKV format. The size of the original video is normally encoded to fit a 4.5Gb or 8.2Gb blank disc, thus this conversion makes backup to DVD or DVD-DL impossible. I’m still looking for a workaround…
2) Fast forward does not work. But at least Jump-To-Time works, so no big loss…