i using hwdvideoshare module in joomla and that i can't make use of the Method 1 for Direct Video Conversions. it takes these things to become done:

*  The exec() function need to be enabled in PHP.
* safe_mode must be set to Off. You can check that at Joomla Help -> System Info -> PHP Information)
* php-cli (Command Line Interface to PHP) must be installed in the server and its path set in Server Settings
* safe_mode must be set to Off for php-cli. You can check that executing php -i | grep safe_mode from the command line 

i have checked the very first two configurations. i'm not sure whether php-cli is enabled or otherwise..i am using php5..how do you enable it, without playing along with other php packages?

Are you currently on the shared webhost? Most not have the configuration you'll need for video conversions. hwdVideoShare lists the hosts that actually work with this particular component. I made use of Imageleet and they're excellent and never costly, and therefore are 100% suitable for both Joomla and hwdVideoShare. Their support staff can also be very attentive to any tickets I submit.