Knews...seems like you're getting feedback!
a couple of notes:
I had a similar problem with my mintek (skipping of audio every 2-3 seconds)...actually it wasn't really "skipping" as much as the volume would go up and down every 2-3 seconds.
The solution, for me, was to set the "VBV buffer size" in Tempenc (or BBMPEG) to 22. Also, I have to encode in 29.97 as well or I get green screens when played on my Mintek.
for the kernal32 error..."Try this. QFECHECK.EXE for Win9x/ME [94 KB]:
ftp://ftp.microsoft.com/softlib/mslfiles/QFECHKUP.EXE QFECHECK.EXE installs in your Windows [%windir% for Win9x/ME] or System [%systemroot%\System32 for Win2000/XP] folder. It searches through your entire Windows Registry and Windows folders, and then reports its findings. It can also be forced to search an alternate path by typing it in. If an updated file is missing, or if a mismatch occurs between the version stored on the disk and the information in the Registry, the Update Information Tool will let you know by marking the "culprit" in red. QFECHECK can also accurately determine your Windows release and core files version/build (i.e. Kernel32.dll, User.exe), especially if you upgraded by installing a patch/fix, so you know exactly which Windows release you're currently using. " I never tried it I just did a search on kernal32 errors and someone posted the above.
Lastly, you say Tmpgenc crashes when you try to load the .AVS script...does it crash when loading/encoding a "pure" mpeg file?