Well this is in the config:
extensions = .mp3,.m4a,.m4p,.ogg,.flac,.url,.alac
ssc_codectypes = ogg,flac,alac
ssc_prog = /opt/sbin/mt-daapd-ssc.sh
plugin_dir = /share/hdd/conf/firefly/plugins
plugins = rsp.so,ssc-script.so
And yes, I moved the firefly webroot + plugins to /share/hdd/conf/firefly and /opt/bin/mt-daapd-ssc.sh is the location of the script.
I also just looked into that script and verified the path to oggdec is right.
So dunno why it wouldnt transcode. It also appeared as if iTunes was waiting for a wav stream when I tried to playbakc the ogg.