And here is the solution to the very specific question I asked Eric: there are at least three good commercial solutions: Squeeze from Sorenson, Agility from Anystream and Cleaner from Discreet - they are the ones mentioned on the Macromedia website. They all use a "watch" folder solution.
Squeeze is $450. I bet YouTube and AudioBlog are using it. I do not think it is a trade secret at all. Everyone in the transcoder business probably knows this... except me. But I am pretty new at that. I have been using Sorenson Squeeze for more than a year now, but I was not aware of the potential of the "watch" folder. A great software BTW.
Thanks to all those who helped and to all those who widened the scope. Great exchange!
Thanks,
Chris
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