Apparently the USE flag check runs against a wall since xorg-x11 doesn't have the xv flag: !!! ERROR: media-video/transcode-1.0.2-r3 failed. Call stack: ebuild.sh, line 1562: Called dyn_setup ebuild.sh, line 665: Called pkg_setup transcode-1.0.2-r3.ebuild, line 55: Called built_with_use 'x11-base/xorg-x11' 'xv' eutils.eclass, line 1617: Called die !!! x11-base/xorg-x11-7.1 does not actually support the xv USE flag! !!! If you need support, post the topmost build error, and the call stack if relevant.
Created attachment 106231 [details, diff] ebuild change to fix issue "Flipping" the xorg-x11 version test from '<7.0' to '! >=7.0' fixed the issue for me...
Fixed in CVS, thanks