David,
Ripping and Encoding is primarily dependent upon:
1. Processor Speed and
2. Read speed of CD/ROM or DVD-ROM Drive and
3. Encoder Type and Encoder Settings
1. Your processor is, unfortunately as I am sure you are aware, VERY SLOW, and this is probably the most important component of encoding the ripped .wav files to whatever file type you've chosen (Media Center first rips the files on the CD to .wav files, them encodes them to the file type you've selected). The processor speed, in and of itself, is enough to make the process of ripping and encoding take an abnormally long time for you.
2. Your CD Read Speed in your settings info says "Max", so that doesn't tell me what the actualy max read speed value is, but if it is something like 4x or 8x, then that also will affect the speed at which you rip the tracks from the CD, but WILL NOT affect the speed at which Media Center encodes the ripped .wav files. This is probably the least of your worries.
3. The encoder type and encoder settings you chose will also greatly affect the speed at which you encode the ripped .wav files. The encoder settings are generally more important (are more efficacious) than the encoder type. Obviously, the more stringent the encoder settings (the higher the bitrate, especially if you've chosen VBR, which almost always takes longer than any other method), the longer it is going to take than, say, encoding the files at a CBR of 128 or so.
Hope this helps...
Wobbley