That Processor is really slow, but that's not really the problem, those settings are rubbish.
Here you can see that a normal DVD has ( us ) 720x480 x 29.9/sec (eu) 720x576x25/sec
You are trying to upscale it first and than to encode the material.
The other way is alot better because the upscaling is then done by the hardware decoder.
If you look at the "ripping scene" you will see that good quality can be delivered at 640x272 (16:9) or 640x480(4:3) with H.264 + AAC audio at arount 1MBit ( combined).
It will take alot less time to encode.
But why on earth did you buy that software when you can get XMediaRecode