This is a direct extension of this question:
How to do something to each file in a directory with a batch script
From the above I leaned how to execute a com
This did it
FOR /r cutAndPendingCompression %%f IN (*.*) DO ( lame %%f compressed\%%~nf -m m -b 16 --vbr-new -V 9 --scale 2.5 move %%f cut\%%~nf )