So why are you putting in d:\mpeg\<gamedirname> into the framefile? The directions specifically say
it should be .\MPEG\<GAMEDIRNAME>Again that's a
DOT, SLASH, MPEG, SLASH, <GAMEDIRECTORYNAME>
e.g.
.\MPEG\LAIR (and NOT d:\mpeg\lair)
.\MPEG\ACE (and NOT d:\mpeg\ace)
.\MPEG\ASTRON (and NOT d:\mpeg\astron)
.\MPEG\GALAXY (and NOT d:\mpeg\galaxy)
That is how the first line of your framefile should be... get it? Good. Even if you did get it to work using the D:\mpeg\<gamedirname> had you followed the directions in the first place, it would've probably saved you a lot of trouble

Actually no.. it was easy for me to setup... I think you're problem was you tried to mess with the settings a little too much (like typing up paths in there)

Whereas I just left everything pretty much at default and voila! It worked. The only thing I had to do was edit the first line of the framefile to .\mpeg\<gamedirname>, then make sure I had the directory names correct and everything else worked fine.