Help with Subler audio conversion

[nebulight]

A little background... I was using Boxee alpha back in the day and I was ripping all my DVDs to .m4v H264 and AC3 audio because at the time I was using a Mac Mini with Boxee and the mac mini could not pass AAC audio to my over optical to my receiver. I ditched the mac mini when the Boxee Box came out and everything was fine until the Boxee Box started crashing left and right. I did a restore and nothing was resolved and my wife was getting fed up so I caved and bought an Apple TV. We also moved and no longer have surround sound (just the TV) and I found out that the Apple TV doesn't decode the AC3 and just passed it to the TV. However I have an older Samsung LCD that doesn't decode the AC3 audio so now I have to reencode my entired collection. However since it's in m4v I think I can just use Subler as I have to pass it through there anyway to add cover art and descriptions.

Here is my problem. I took an MKV that I had downloaded instead of ripped when I dragged it down to the Subler icon in the dock, it opened up and asked to convert on the right side:



As you can see on the action I can convert it to AAC then do my normal lookup to add the info and cover art. The nice part about this is I can drag multiple items at a time to batch the conversions and add them to a Queue.

However when I drag one of my m4v files, it doesn't give me the option, it just adds the tracks:



As you can see, there is no option to convert the audio as it doesn't give you the option. I have a work around which is to go to File/New then add tracks and pick the file. However the problem with doing it this was is it would take forever! I have 279 movies and thousands of tv show episodes that I've manually ripped so to add all the files one by one would take forever. If I could batch it, I'll just let it run while I'm at work and sleeping. However I can't batch it.

Any pointers?