Batch file experts in here!

[Hamish]

I've got the following batch file which converts .avi files to .wmv for my XBox 360 using VLC. I drag a file onto the .bat file and it outputs a file in the same directory as the input file.

"c:\vlc\vlc" -vvv %1 --sout-ffmpeg-qscale 1 :sout=#transcode{vcodec=WMV2,scale=1,acodec=wma,ab=96,channels=2}:duplicate{dst=std{access=file,mux=asf,dst=%1.wmv}}

I was wondering if it would be possible instead to put the file in D:\My Videos\sourcefilename.wmv instead. I think this is something to do with the
dst=%1.wmv
part of the line except I don't know how to strip the path from the %1 and it outputs to D:\My Videos\C:\sourcelocation\sourcefilename.wmv instead which does not work.

Bonus points: If you can make it so that I can drag a load of files onto the batch file at once and have it encode them one by one...

cheers
Hamish