VLC must be available. cvlc should be in your path, or the VLC call in the script adjusted to point to the VLC executable's location.
Tag support can be provided by TagPy or with Mutagen; one of these must be present to keep tags when transcoding but are not required otherwise. (Note: copying tags from .wma files requires Mutagen.)
Python 2.7 is required for the multithreaded, Mutagen-supporting script; the single threaded version will run on older interpreters.
The basic invocation should resemble cp, as ./transcode.py SOURCE... DEST etc. See ./transcode.py --help for options and more details.