I had heard that the beta of MCEBuddy would do a conversion from WTV to H.264 here: http://www.geekzone.co.nz/forums.asp?forumid=84&topicid=71767
So i went ahead and downloaded the latest MCEBuddy beta 13 and gave it a shot.... #FAIL
Turns out it doesnt work so well on x64 version of Windows 7. A bit of googling and i found an item in the MCEBuddy forums with a procedure to make it work - using a tool to force the program to execute in 32bit mode. Post here: Getting MCEBuddy 2.0 to run in 64 bit environment
The gist is this: use a tool called "corflags.exe" from the .Net SDK to force the MCEBuddy.BetaUI.exe app to run in 32bit mode.
C:\Program Files (x86)\MCEBuddy2Beta>CorFlags.exe MCEBuddy.BetaUI.exe /32Bit+
In my current search for tools i also found MC-TVConverter which was a one-click conversion utility, but i wasnt happy with the output. Different profiles had different issues from incorrect aspect ratios, to lagging sound.
I'm still running MCEBuddy over one of my files, i'll post again after i see the end result.