LastLine, that doesn't look right to me at all, but I don't know what is the matter with it. No way should it take that long to do 20 mins of video (even set to H.264, which is more processor-intensive) on a 2.1Ghz iMac, I have a Dual 2.5 Ghz Powermac G5 that would get through that in less than 15 minutes. An iMac G5 would be slower, but not 25 times slower!
And sk1985, you indicate you know this, but video encoding is MUCH more processor intensive than ripping a CD into iTunes as an MP3... not only is it dealing with two forms of data in terms of Audio and Video, it's also (in most cases) decoding the CSS system that locks up DVDs, and dealing with much more data generally, which means it'll take longer to compress. Handbrake is pretty fast compared to most other solutions I've tried for that kind of thing.