Mencoder command and output

mencoder "$invideo" -o "$3/$outvideo" \
        -alang $ALANG $SUBOPTS \
        -vf scale=320:-10,harddup -mc 0 -noskip \
        -oac faac -faacopts mpeg=4:object=2:raw:br=128 \
        -of lavf -lavfopts format=ipod \
        -ovc x264 -x264encopts nocabac:level_idc=1.3:bframes=0:vbv_bufsize=768:vbv_maxrate=768

$ALANG = jpn
$SUBOPTS="-subfont-text-scale 3.3 -slang eng -spualign 2"
$invideo = "something.mkv"
$3 = "somefolder"
$outvideo = "something.m4v"

# Output (CTRL-C was pressed early, so this is an incomplete encode)
MEncoder 1.0rc4-4.4.5 (C) 2000-2010 MPlayer Team
success: format: 0  data: 0x0 - 0xefa4c9d
libavformat file format detected.
[matroska @ 0x9806160]Estimating duration from bitrate, this may be inaccurate
[lavf] stream 0: video (h264), -vid 0, [video]
[lavf] stream 1: audio (aac), -aid 0, -alang eng, Audio
[lavf] stream 2: audio (aac), -aid 1, -alang jpn, Audio
[lavf] stream 3: subtitle (unknown), -sid 0, -slang eng, Standard Subtitles
VIDEO:  [H264]  720x480  0bpp  29.970 fps    0.0 kbps ( 0.0 kbyte/s)
[V] filefmt:44  fourcc:0x34363248  size:720x480  fps:29.970  ftime:=0.0334
==========================================================================
Opening audio decoder: [faad] AAC (MPEG2/4 Advanced Audio Coding)
FAAD: compressed input bitrate missing, assuming 128kbit/s!
AUDIO: 48000 Hz, 2 ch, s16le, 128.0 kbit/8.33% (ratio: 16000->192000)
Selected audio codec: [faad] afm: faad (FAAD AAC (MPEG-2/MPEG-4 Audio))
==========================================================================
** MUXER_LAVF *****************************************************************
REMEMBER: MEncoder's libavformat muxing is presently broken and can generate
INCORRECT files in the presence of B-frames. Moreover, due to bugs MPlayer
will play these INCORRECT files as if nothing were wrong!
*******************************************************************************
OK, exit.
Opening video filter: [expand osd=1]
Expand: -1 x -1, -1 ; -1, osd: 1, aspect: 0.000000, round: 1
Opening video filter: [harddup]
Opening video filter: [scale w=320 h=-10]
==========================================================================
Opening video decoder: [ffmpeg] FFmpeg's libavcodec codec family
Selected video codec: [ffh264] vfm: ffmpeg (FFmpeg H.264)
==========================================================================
Movie-Aspect is 1.33:1 - prescaling to correct movie aspect..000 [0:0]
[swscaler @ 0xb2afc0]BICUBIC scaler, from yuv420p to yuv420p using MMX2
x264 [info]: using SAR=1/1
x264 [info]: using cpu capabilities: MMX2 Cache64
x264 [info]: profile High, level 1.3
VIDEO CODEC ID: 28f ( 0%)  0.00fps Trem:   4min   0mb  A-V:0.000 [0:0]
AUDIO CODEC ID: 15002, TAG: 0
Writing header...
[ipod @ 0xe48d20]Codec for stream 0 does not use global headers but container format requires global headers
[ipod @ 0xe48d20]Codec for stream 1 does not use global headers but container format requires global headers
[ipod @ 0xe48d20]Warning, extension is not .m4a nor .m4v Quicktime/Ipod might not play the file
[ipod @ 0xe48d20]Warning, extension is not .m4a nor .m4v Quicktime/Ipod might not play the file
^CPos:  19.5s    627f ( 3%) 20.44fps Trem:  15min  45mb  A-V:0.000 [510:127]
Flushing video frames.
Writing index...

Video stream:  499.051 kbit/s  (62381 B/s)  size: 1300912 bytes  20.854 secs  627 frames

Audio stream:  127.813 kbit/s  (15976 B/s)  size: 319362 bytes  19.989 secs
x264 [info]: frame I:5     Avg QP:20.05  size:  6184
x264 [info]: frame P:620   Avg QP:26.09  size:  2048
x264 [info]: mb I  I16..4: 51.1% 20.8% 28.1%
x264 [info]: mb P  I16..4:  3.2%  1.3%  2.0%  P16..4: 28.4% 12.3%  7.1%  0.0%  0.0%    skip:45.7%
x264 [info]: 8x8 transform intra:19.9% inter:35.6%
x264 [info]: coded y,uvDC,uvAC intra: 35.7% 69.4% 43.3% inter: 16.7% 27.2% 14.6%
x264 [info]: i16 v,h,dc,p: 37% 32%  5% 27%
x264 [info]: i8 v,h,dc,ddl,ddr,vr,hd,vl,hu: 16% 18% 24%  6%  7%  6%  7%  7%  8%
x264 [info]: i4 v,h,dc,ddl,ddr,vr,hd,vl,hu: 32% 19% 18%  5%  6%  6%  5%  6%  4%
x264 [info]: i8c dc,h,v,p: 39% 27% 23% 10%
x264 [info]: Weighted P-Frames: Y:3.7%
x264 [info]: ref P L0: 64.0% 13.4% 16.9%  5.6%  0.1%
x264 [info]: kb/s:499.05