Media Encoder only using 15% CPU, and system slows to cement

Not sure what's going on, but trying to export from Premiere CS6 to Media Encoder and very basic 640x360 H264 4 minute clips are taking 40 minutes, only using 15-30% CPU (on 2011 Macbook Pro 2.3 core i7), and the system slows to a cement crawl (had to stop it just to type this post). Nothing else is using any CPU and RAM is 25% free.
I don't even know where to begin to troubleshoot. Tried restarting is all so far. Any advice would be greatly appreciated.
Thanks,
Brandon

It seems there is a problem with the Mercury Playback Engine on my MBP. I turned it off and switched to software only mode, and now CPU is screaming at 750% on export and estimated time is about 8 times faster

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