Compressor 4.0 VERY slow - even though I am using Qmaster, why?

I am using Compressor 4.0.7 and found the threads on QMaster clusters to get it to speed up.
I looked at my activity monitor and now see that its using about 98% of my CPU and all but 2Gb of my available RAM.   So in theory I've got it to use best settings.
However, it has not sped up the process much and I'm still looking at 12 hrs to convert a 40 minute file to MP4 (settings below).
Yes, it is converting a 720x480 source to 640x480 square pixel destination, but it should no way take this long.
Is it because "frame controls" are on?   Should I upgrade to 4.1 to see if that works better?
Name: JLOT - setting 1 640x480 1500bps
Description: H.264 for Broadband at 5 Mbps
File Extension: mp4
Estimated size: 680.08 MB
Video Encoder
          Width: 640
          Height: 480
          Pixel aspect ratio: Square
          Crop: None
          Padding: None
          Frame rate: (100% of source)
                    Selected: 29.97
          Frame Controls On:
                    Retiming: (Fast) Nearest Frame
                    Resize Filter: Linear Filter
                    Deinterlace Filter: Best (Motion Compensated)
                    Adaptive Details: Off
                    Antialias: 0
                    Detail Level: 0
                    Field Output: Same as Source
          Codec Type: MPEG-4 Video
          Multi-pass: Off, frame reorder: Off
          Pixel depth: 32
          Spatial quality: 75
          Min. Spatial quality: 75
          Key frame interval: 90
          Temporal quality: 75
          Min. temporal quality: 75
          Average data rate: 1.5 (Mbps)
          Video: MPEG-4 improved
Enhanced Podcast: Off
Compatible with Mac and PC

Thanks Russ,
Here are those details:
OSX 10.8.5,  3.4Ghz Core i7, 8GB memory
4.1 is WAy different to 4.0, would the customs settings all port OK?   And do you have to pay for a 4.1 upgrade or not?
My CPU is maxed out but still, its slow.

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