Issues with shell script

I'm attempting to have Hazel run LAME on any new .aif files in a folder and convert them to mp3s. I can run the script in Terminal and it works fine, but it doesn't seem to work in Hazel for some reason.

Command is Run Shell Script
Script is:

Code: Select all: /usr/local/bin/lame -a -b64 $1

I get an

error processing shell script

message from Hazel when it tries to run.

The same script works fine when pasting it into Terminal and replacing $1 with the file path, but Hazel keeps choking on it for some reason. Any ideas?

Are there spaces in the path? If so, that's probably the problem. Enclose $1 in double quotes to fix it.