With Red October, you won't need to configure Haali or any other filters. Make sure you're using the red october standard mode rather than custom mode with extra filters configured.
What kind of TV is it? And is it PAL or NTSC?
On our NTSC Sony Bravia, an MKV plays fine with "Generic DLNA" and conversion set to "MPEG2/DVD stream".
** edit ** However, I have a couple Advanced options set for my Generic DLNA server, see my next post below.
If you want to dig deeper on your system, you can look in MC's temp directory at what type of video file is being created by the video conversion. On my system that temp directory is here:
C:\Users\John\AppData\Roaming\J River\Media Center 17\Temp
In it, you'll see a file like "VideoStream - xxxx.mpg" being created. This is the file we're sending to the TV. When the conversion is finished, you could copy this file somewhere, import it into MC, then try playing it on the TV with DLNA conversion set to none. If it still doesn't play, your TV doesn't support that format.