Great--it sounds like we are making progress.
The DSD in DoP format check mark is required if you ever want to Encode your Output Format so that all File Types play back as 2xDSD (DSP Studio -> Output Format -> Output Encoding -> 2xDSD in DoP Format). You wrote earlier that you do not want to do that, but it gives you the ability later if you want to try it. There is plenty of debate on whether it is better, sounds better, adds harmonic distortion, etc. There are hundreds of those arguments in the Audiophile world regarding what one person thinks sounds better vs what another person thinks sounds better vs the actual science behind it. In the end, as long as it plays back as you like, and it sounds good to you, that is all that really matters.
Now, lets see if we can get Media Network working in case you ever need it.
On all the computers, go to Tools -> Options -> Media Network and make sure all these boxes are checked:
1. Use Media Network to share
2. Authentication (enter whatever username/password you would like, just keep it the same on all the computers)
3. Under Advanced -> DLNA Server, DLNA Renderer, and DLNA Controller.
On the laptops, also check the following boxes under Client Options:
1. Auto sync with server
2. Show playback zones from the server
3. Audio Conversion -> Conversion: Don't convert audio
Follow these steps to load your downstairs library:
http://wiki.jriver.com/index.php/Library_Server#Access_from_another_PC_on_your_LANUsing the guide, your laptop is the Client and your downstairs PC is the Library Server.
You should now see your entire downstairs Library on your laptop. Initiating playback from your laptop, please try to play the same tracks that you tested with the thumb drive. Again, please let me know what plays correctly and what does not. If it doesn't play, please tell me what it does instead (ie error message, no sound, stutters, wrong Sample Rate, etc).