1. WMV quality. We never mess or re-encode content in any way. One thing you could try is holding Shift and click the refresh button in your browser. That will clear the cache. It's a long shot, and if it doesn't work, I'd recommend following up with support. http://support.techsmith.com.
2. I know what you mean about the MP4s having to load. Why that is happening is because the way they are being produced is not optimized for streaming. What software are you using? See if there is an option for streaming. The technical reason it's not streaming is because something called a MOOV atom is at the end of the video instead of at the beginning.