Okay a couple of points here:
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I noticed you were using a temp folder inside your Convert folder - not a good idea to put the temp folder inside the source recording directory, in this case since monitor sub directories is not checked it may work but still not generally a good idea. pick another folder outside, it's a temp and MCEBuddy will clean it up when it's done.
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I don't see any monitoring work being on the D:\Convert folder. Are you sure there are files in it? If so can you confirm that the files security permissions are read AND write for everyone including Local System accounts?