yeah, what you're getting is correct - video will be launched in an external player (you can set it to use WMP as an alternative though). Not sure if you can get it to play in the browser as I'm not by my PC now. I think there's options to play or stream though - do they both do the same thing on your setup????
If I remember rightly the idea behind sugesting the web interface was not that it is 'better' than gbpvr, but that it might be more familiar to you if you wanted to use a PC type interface.
Server: Win7 N | AMD Phenom II X4 3.2GHz | 4Gig RAM | Gigabyte GA-MA770-DS3 Mobo | 2TB+ HDDs | 2x Nova DT | ATI HD 5450 | Mobile Pre USB Audio
Client 1: Win7 N | Dell GX280 P4 3.4GHz |2Gig RAM | ATI HD 5450 | Cambridge DacMagic
Client 2: Win7 N | Dell GX280 P4 3.4GHz |2Gig RAM | ATI HD 5450 |On-board Sound