To transcode, I user
dBpowerAMP Music Converter. It's not free, but does everything I need, plus you can automate tasks if you know about VB or C++.For mp2, you'll need to download a codec from the website.
For example, I made a program to start mplayer to get a dump of the stream of a radio show every week to a wmv file. I then launch dBpowerAMP to transcode to mp3. I can't say how fast it is though, as I have nothing to really compare. It takes 14 minutes to transcode 4 hours of wmv to a VBR 8-32kpbs mono on my AMD 3000+.
One thing annoying me with its automation feature is that you can't specify it's VBR settings when you're invoking it. Instead, it uses the last settings used in manual mode. So if you use it manually, you must set the settings back to what you want them in automatic for the next time...