All you need is XMPlay and LAME encoder from:
http://support.xmplay.com/Encoders_index.htmlNow copy lame.exe and lame_enc.dll into your XMPlay dir (the same dir with the xmplay exe)
Then load xmplay.
Open Options & Stuff and go to External encoders tab. Set encoder to lame. In command line type i.e.:
lame -m s -h -b 192 - %oGo to Device tab, set output device to External - LAME
Hope this helps

One of the other more experienced members will be able to help more.