Okay, here is what I've tried:
WinAmp - cannot write out to a .wav (because of a license-protected file)
Xilisoft Audio Converter - good program - can't convert license-protected files
Windows Media Player 10.5 (and the above trick using FairUse4WM) - didn't work (can't remember why)

what did work you ask?
1. get tunebite
1.5 SET A RESTORE POINT
2. uninstall all update for windows media player from add/remove programs
3. uninstall windows media player (it is part of windows, on the left... also, doesn't remove windows media player at all, but will reset all configurations)
4. tell windows media player to automatically get licenses for file in the configuration step
5. take tunebite, turn off all programs, and convert the files
6. System Restore to the point you just left

On a side note: DO NOT UPDATE TO WINDOWS MEDIA PLAYER 11
For me, it did 2 things:
1 - wipe away all license files.
2 - re-architecture my mp3 player (a phillips gogear) so that it would play music better. Take note, this made it so that it would ONLY support music files; not cover art, not playlists, not the data files that it used to. Data files previously on device (movies, backups, w/e it is 30 gig) were still there... but could not be updated.
3 - certain subbing programs also no longer worked

Props to the people here and their help