I use Foobar2000 to play music, and I'm aware of a way I can use to mass convert to Ogg Vorbis into a new folder structure which works very well. There are two tasks that it doesn't do. It doesn't copy over an image for album art, and it doesn't embed album art into the .ogg file. Either option would work for me, I would prefer the image as the player I use on my phone will use a single image for a folder, but if the only way to do it is embedding the images into the files then so be it.
it would seem you're not running the latest version of foobar2000. notice under the "Other" section you can configure it to copy any files that are in the source directory.