[Milhouse]

It sounds like the --local folder being processed doesn't contain any artwork at all and is thus "needed". Your --local path is still slightly wrong, as on Windows you should be specifying "Y:\Movies" (back slash not forward slash), so worth fixing that and trying again (Python usually fixes that kind of thing automatically).

If you add "--v" to the mklocal.py command line you'll get more detailed output of what mklocal.py is doing. If it's still not clear, upload the screen output (all of it, or a screenshot) and I can take a look.

Also, describe the contents of the movie folder that is it is being processed - the easiest way would be to upload the output from "texturecache.py directory smb://NAS-MEDIA/Movies/path/to/movie/folder" (ie. the SMB path for the directory that contains the movie file you are processing). This way I can correlate the output from -v with the folder and hopefully suggest the reason it's not working.