The script requires that you have python, oggenc (part of the vorbis-tools package) , and mpg123 (or mpg321). dir2ogg now supports id3 tags. This new feature requires you to install pyid3lib. pyid3lib is a python module that allows manipulation of id3 tags. It is not in the standard library, nor may it ever be, however, it is freely available from http://pyid3lib.sourceforge.net/ , and is simple to install. If you choose not to install this module you can still use the script, but your id3 tags will evaporate into thin air.
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