Eddie -
Whether it ends up working on your system or not remains to be seen. But to even get close to using LAME in BIAB/RB, you have to install the
LAME ACM Version (click to see more info), and not just installing the
LAME MP3 Encoder (click link for more info).
ACM is the Audio Codec Manager, which basically installs the Codec into the registry as an audio codec and makes it available to applications (such as BIAB/RB) who query Windows for available CODECS. Just installing the executable/DLL version just copies those files to your hard drive, but doesn't update the registry.
Again, don't know if it will work for you or not, but it's the first step.