'the duke' already mentioned to set the path to the LAME.exe correctly...
Under 'edit' there are 'Options' and 'LAME options', open 'Options' and specify the path correctly...
If you get it to work make sure you use one of the --alt-presets for encoding music.
'Lame Options' ... 'Expert' ... 'custom options' ... "--alt-preset standard" (or instead of 'standard' use 'extreme' / 'insane' or any desired bitrate you want to achieve, but don't go too low)
Another statement slightly off topic: If you are ripping with EAC then you don't have to encode your wav's separately using Razorlame and LAME.exe.
You can embed this process in EAC, taggging included! :flipoff:
There are several websites where you could find information about that, one would be the following:
http://users.du.se/~kdo/mpc/quick_guide.htm#mp3
check the section '
How to configure EAC to use Lame encoder as "external compressor"'