ok they got it reinstalled here is fresh new error :-

Code:
cronjob started

STARTING VIDEO CONVERSION (process_queue.id = 364)

File: /home/amatecom/public_html/video/MY-WIFE-AND-MY-FRIEND-2.3gp

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INSERT INTO video SET UID='1', seo_name='mywifeandmyfriend2', title='MY-WIFE-AND-MY-FRIEND-2', description='MY-WIFE-AND-MY-FRIEND-2', keyword='test test ', channel='0|1|2|3|0', vdoname='MY-WIFE-AND-MY-FRIEND-2.3gp', flvdoname='12407307271133458623.flv', addtime='1240730727', adddate='2009-04-26', type='public', active='0', approve='0'

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Video id: 344

Find video duration - START

/usr/local/bin/ffmpeg -i /home/amatecom/public_html/video/MY-WIFE-AND-MY-FRIEND-2.3gp

ffmpeg version CVS, build 3277056, Copyright (c) 2000-2004 Fabrice Bellard
  configuration:  --enable-mp3lame --enable-libogg --enable-vorbis --disable-mmx --enable-shared --enable-gpl
  built on Apr 25 2009 16:16:53, gcc: 4.1.2 20080704 (Red Hat 4.1.2-44)

Seems that stream 0 comes from film source: 2997.00 (2997/1) -> 24.00 (24/1)
Input #0, mov,mp4,m4a,3gp,3g2, from '/home/amatecom/public_html/video/MY-WIFE-AND-MY-FRIEND-2.3gp':
  Duration: 00:01:02.1, start: 0.000000, bitrate: 445 kb/s
  Stream #0.0, 24.00 fps: Video: h263, yuv420p, 352x288
  Stream #0.1: Audio: mp4a / 0x6134706D, 44100 Hz, stereo
Must supply at least one output file

Duration (ffmpeg): 62

DURATION: 01:02

Create Thumbnail - START
Creating Thumbnail with ffmpeg

/home/amatecom/public_html/thumb/344.jpg

/usr/local/bin/ffmpeg -i /home/amatecom/public_html/video/MY-WIFE-AND-MY-FRIEND-2.3gp -ss 00:00:46 -t 00:00:01 -s 320x240 -r 1 -f mjpeg /home/amatecom/public_html/thumb/344.jpg

/home/amatecom/public_html/thumb/1_344.jpg

/usr/local/bin/ffmpeg -i /home/amatecom/public_html/video/MY-WIFE-AND-MY-FRIEND-2.3gp -ss 00:00:43 -t 00:00:01 -s 120x90 -r 1 -f mjpeg /home/amatecom/public_html/thumb/1_344.jpg

/home/amatecom/public_html/thumb/2_344.jpg

/usr/local/bin/ffmpeg -i /home/amatecom/public_html/video/MY-WIFE-AND-MY-FRIEND-2.3gp -ss 00:00:25 -t 00:00:01 -s 120x90 -r 1 -f mjpeg /home/amatecom/public_html/thumb/2_344.jpg

/home/amatecom/public_html/thumb/3_344.jpg

/usr/local/bin/ffmpeg -i /home/amatecom/public_html/video/MY-WIFE-AND-MY-FRIEND-2.3gp -ss 00:00:37 -t 00:00:01 -s 120x90 -r 1 -f mjpeg /home/amatecom/public_html/thumb/3_344.jpg

Create Thumbnail with ffmpeg - END

CONVERT COMMAND: /usr/local/bin/mencoder '/home/amatecom/public_html/video/MY-WIFE-AND-MY-FRIEND-2.3gp' -o /home/amatecom/public_html/flvideo/12407307271133458623.flv -of lavf -oac mp3lame -lameopts abr:br=56 -ovc lavc -lavcopts vcodec=flv:vbitrate=500:mbd=2:mv0:trell:v4mv:cbp:last_pred=3 -srate 22050 -ofps 24 -vf harddup

####################################################

Array
(
    [0] => MEncoder 1.0rc1-4.1.2 (C) 2000-2006 MPlayer Team
    [1] => CPU: Intel(R) Core(TM) i7 CPU         920  @ 2.67GHz (Family: 6, Model: 26, Stepping: 4)
    [2] => CPUflags: Type: 6 MMX: 1 MMX2: 1 3DNow: 0 3DNow2: 0 SSE: 1 SSE2: 1
    [3] => Compiled for x86 CPU with extensions: MMX MMX2 SSE SSE2
    [4] => 
    [5] => success: format: 0  data: 0x0 - 0x34d08f
    [6] => ISO: File Type Major Brand: 3GPP Profile 4
    [7] => Quicktime/MOV file format detected.
    [8] => VIDEO:  [s263]  352x288  24bpp  23.976 fps    0.0 kbps ( 0.0 kbyte/s)
    [9] => [V] filefmt:7  fourcc:0x33363273  size:352x288  fps:23.98  ftime:=0.0417
    [10] => ==========================================================================
    [11] => Opening audio decoder: [faad] AAC (MPEG2/4 Advanced Audio Coding)
    [12] => AUDIO: 44100 Hz, 2 ch, s16le, 128.0 kbit/9.07% (ratio: 16000->176400)
    [13] => Selected audio codec: [faad] afm: faad (FAAD AAC (MPEG-2/MPEG-4 Audio) decoder)
    [14] => ==========================================================================
    [15] => 
    [16] => Exiting...
)

####################################################

Return value: Exiting...

Running flvtool2: /usr/bin/flvtool2 -U /home/amatecom/public_html/flvideo/12407307271133458623.flv

Convert Error or converted video is less than 1 kb in size, try upload a big video. If that do not work, verify convert command works on the server.