Your log file shows that the original video is copy protected. To override this: taken from teh documentation -> Advanced Commands on the MCEbuddy website:
Add this line to the profile you're using in profiles.conf (in the installation\config directory)
IgnoreCopyProtection=false
By default, this value is false. If this is set to true, then MCEBuddy will ignore the Copy Protection flag on the recording if it encounters it during conversion. It will only record an error in the conversion log and continue the conversion. If the recording is really copy protected then the final video will be look garbled. This flag can help because sometimes videos are incorrectly flagged by recording software/tuners. When this is set to false, if MCEBuddy encounters an Copy Protection flag it will stop the conversion after logging an error.
I'm assuming you're using the latest version version of MCEBuddy