Glad someone else found it useful. I've not taken a look at the script for a long time, so I've not updated it I'm afraid (I don't watch much video on my D2 anymore).
But, in case it's useful, I found a video tutorial - I reckon this is a much simpler approach in the long run:
http://unix-tutorial.blogspot.com/2007/07/cowon-d2-avidemux-howto.html
It has worked for me - I've just tried converting an MPEG. I think for some videos, the sound may need re-encoding to MP3 - it should work for most without re-encoding the audio though.
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