mplayer has been reinstalled with -lameopts support.

I am now getting this output on the command.

Code:
[root@server ~]# /usr/local/bin/mencoder /home/userdir/public_html/video/dream_kelly_on_bed.wmv -o /home/bolek/public_html/video/1.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 -lavfopts i_certify_that_my_video_stream_does_not_use_b_frames
MEncoder 1.0rc1-3.4.6 (C) 2000-2006 MPlayer Team
CPU: AMD Athlon(tm) 64 X2 Dual Core Processor 4200+ (Family: 15, Model: 75, Stepping: 2)
CPUflags: Type: 15 MMX: 1 MMX2: 1 3DNow: 1 3DNow2: 1 SSE: 1 SSE2: 1
Compiled for x86 CPU with extensions: MMX MMX2 3DNow 3DNowEx SSE SSE2

success: format: 0 data: 0x0 - 0x1daf28
ASF file format detected.
VIDEO: [WMV3] 320x240 24bpp 30.000 fps 0.0 kbps ( 0.0 kbyte/s)
[V] filefmt:6 fourcc:0x33564D57 size:320x240 fps:30.00 ftime:=0.0333
==========================================================================
Opening audio decoder: [ffmpeg] FFmpeg/libavcodec audio decoders
AUDIO: 22050 Hz, 2 ch, s16le, 32.0 kbit/4.54% (ratio: 4006->88200)
Selected audio codec: [ffwmav2] afm: ffmpeg (DivX audio v2 (FFmpeg))
==========================================================================
** MUXER_LAVF *****************************************************************
You have certified that your video stream does not contain B frames.
REMEMBER: MEncoder's libavformat muxing is presently broken and will generate
INCORRECT files in the presence of B frames. Moreover, due to bugs MPlayer
will play these INCORRECT files as if nothing were wrong!
*******************************************************************************
OK, exit
Opening video filter: [expand osd=1]
Expand: -1 x -1, -1 ; -1, osd: 1, aspect: 0.000000, round: 1
==========================================================================
Opening video decoder: [dmo] DMO video codecs
DMO dll supports VO Optimizations 0 1
DMO dll might use previous sample when requested
GetOutput r=0x0 size:230400 align:1
StreamCount r=0x0 1 1
Decoder supports the following formats: YV12 YUY2 UYVY YVYU RGB8 RGB555 RGB565 RGB24 RGB32
Decoder is capable of YUV output (flags 0x1b)
VDec: vo config request - 320 x 240 (preferred colorspace: Packed YUY2)
VDec: using Planar YV12 as output csp (no 0)
Movie-Aspect is undefined - no prescaling applied.
videocodec: libavcodec (320x240 fourcc=766c66 [flv])
[VE_LAVC] High quality encoding selected (non-realtime)!
Selected audio codec: [ffwmav2] afm: ffmpeg (DivX audio v2 (FFmpeg))
==========================================================================
** MUXER_LAVF *****************************************************************
You have certified that your video stream does not contain B frames.
REMEMBER: MEncoder's libavformat muxing is presently broken and will generate
INCORRECT files in the presence of B frames. Moreover, due to bugs MPlayer
will play these INCORRECT files as if nothing were wrong!
*******************************************************************************
OK, exit
Opening video filter: [expand osd=1]
Expand: -1 x -1, -1 ; -1, osd: 1, aspect: 0.000000, round: 1
==========================================================================
Opening video decoder: [dmo] DMO video codecs
DMO dll supports VO Optimizations 0 1
DMO dll might use previous sample when requested
GetOutput r=0x0 size:230400 align:1
StreamCount r=0x0 1 1
Decoder supports the following formats: YV12 YUY2 UYVY YVYU RGB8 RGB555 RGB565 RGB24 RGB32
Decoder is capable of YUV output (flags 0x1b)
VDec: vo config request - 320 x 240 (preferred colorspace: Packed YUY2)
VDec: using Planar YV12 as output csp (no 0)
Movie-Aspect is undefined - no prescaling applied.
videocodec: libavcodec (320x240 fourcc=766c66 [flv])
[VE_LAVC] High quality encoding selected (non-realtime)!
Selected video codec: [wmv9dmo] vfm: dmo (Windows Media Video 9 DMO)
==========================================================================
MP3 audio selected.
New_Face failed. Maybe the font path is wrong.
Please supply the text font file (~/.mplayer/subfont.ttf).
subtitle font: load_sub_face failed.
VIDEO CODEC ID: 0
AUDIO CODEC ID: 15001, TAG: 0
Writing header...
Pos: 0.7s 22f ( 5%) 0.00fps Trem: 0min 1mb A-V:0.068 [0:43]
Skipping frame!
Pos: 1.0s 32f ( 5%) 0.00fps Trem: 0min 1mb A-V:0.067 [565:45]
Skipping frame!
Pos: 1.9s 59f ( 7%) 0.00fps Trem: 0min 1mb A-V:0.068 [465:45]
Skipping frame!
Pos: 58.1s 1746f (100%) 105.92fps Trem: 0min 3mb A-V:-0.005 [446:45]
Flushing video frames
Writing index...
SEEK 4
SEEK 52
SEEK 174
SEEK 3641335

Video stream: 446.825 kbit/s (55853 B/s) size: 3245064 bytes 58.100 secs 1746 frames

Audio stream: 45.687 kbit/s (5710 B/s) size: 332529 bytes 58.227 secs
The error is gone, but the video on the website is not playing properly.