I found this confusing and thought I'd post a note. I'm running with NFS and when I do the "make install" the files get copied into my NFS file system. However, it seems the encode demo is located in 2 places:
/home/root/omap3530/dvsdk-demos/encode
/usr/share/ti/dvsdk-demos/encode
The version in /usr/share has a softlink to the executable but the one copied into the filesystem does not. I imagine this will trip up a lot of people so I hope this post helps someone. Better yet, I hope the DVSDK team changes the "install" such that it adds a soft link or copies the actual server executable next to the app.