I've been using TEncoder free video encoder now and then for some time.Entry on VideoHelpSourceForge Home Page
I just upgraded to 3.0 and it seems to be improving nicely. The main reason I'm posting is 3.0 has a CPU Meter that's very handy. It displays percentage of CPU used in a fluctuating progress control. But the nice thing is now I don't have to run Core Temp and add up the percentages from the cores. This shows a simple percentage of the total CPU. It seems the code has been improved too. I use FFMPeg. I can't speak to how well it works with MenCoder as the encoder. Lately I have been doing remuxing to another container processing only the audio. The video set to Direct Stream Copy. The throughput is very fast and plays well on my WD set top box.
It still has a few quirks. I'm waiting to see what the author says as to why WD preset (mkv) has output container of MP4. I have to make manual tweaks. But the processing seems to be done all inline. There's no stages of splitting off the audio, encoding, remuxing as with some other encoders. Just writes the output file as the progress bar moves along. Very fast. I guess that's the way FFMPeg works. If you prefer MenCoder I'm not sure exactly what happens.