If I understand your question properly, then you might be comparing apples and oranges.
Let me explain: when you encode something with two-pass, you almost always give the encoder a nominal average bitrate, which it tries to achieve by allocating bits appropriately over the span of the material. The encoder's programmers may also take the first pass's information to improve general quality by various means. When you're encoding with a quality setting (one-pass), then instead of modifying quality to suit space (and thereby getting an assigned average bitrate), you instead forfeit predicable file size for constant quality.
For instance, let's say that you wanted to encode a song. In two-pass mode, you'd be able to assign it an average bitrate. However, while you are garaunteed the highest quality for the given average bitrate, the encoder still may be able to give you better quality. It would be incapable of doing so though because of the file size limitations which you imposed. If you encoded the file at 100% quality, then the encoder would do it's absolute best to achieve the greatest quality possible for every frame, disregarding file size completely.
If this still makes sense to you, then you can see why both modes are benefitial. If you need a constant quality, then choose the quality setting. If you need a predictable file size, choose 2-pass. Does that all make sense?
QUOTE
So would 2 pass VBR 192 offer superior quality to 1 pass Quality 98 (which produces avg. bit rates of 275-350)?
I'm assuming the latter is better, but I am not an expert.
edit: don't assume, of course, that higher bitrates mean higher quality. That's a pretty popular myth, actually. The important thing to remember is that for the material you're encoding, there will be a peak quality that the codec you're using can achieve, and beyond that you're most likely going to be wasting bits. If WMA can achieve top-notch quality at 192kbps 2-pass, then it would be wasteful to force it to use more bits for sound you're most likely unable to hear anyway.