OK I fixed it, you need this in your batch file:
"c:\programs\vlc.exe" %1 --sout=#transcode{vcodec=mp2v,vb=600,width=176,height=128,acodec=mp3,ab=128,samplerate=44100}:std{access-video=file,mux=ps,url=%1.mpg}
You'll need to adjust the path to your VLC, the height and the width!
i used it and here what i saw in the Messages window of VLC
access_output_file error:
stream_out_standard error:
stream_out_transcode error: cannot create chain
main error:
main error: cannot start stream output instance, aborting
what does it mean?? ..