This thread is partially addressed in this thread re: B&W and sepia display for visitors:
http://forums.zenfolio.com/forums/p/473/2549.aspx#2549 I do not know if Steve Lockyer uses the same RGB to grayscale conversion process that I do; I would be interested to know, though.
However, your question is one I had asked MPix for more details about a few weeks ago re: their B&W and sepia prints: specifically, how they do the conversion from RGB to greyscale in their software. I did not receive an answer (nor did I receive the paper samples I ordered from them 5 weeks ago), so I had MPix print 5 test prints (1-5 below) of 2 files. I let MPix do "color correction" on all 5 of the prints:
First file: RBG: I took an RGB file and had MPix 1) print it in color on their color paper, 2) convert it to sepia and print it on their color paper, and 3) convert it to B&W and print it on their Ilford B&W paper.
Second file: B&W: I also took a file that I converted to greyscale myself. I have found that the coversion method I prefer in PhotoShop is this:
a. I take the RGB file and split the channels.
b. I decide which channel, R, G, or B gives me the most pleasing tonal value for the subject (for people, it is often the red channel).
c. I then make any levels or other edits to this file I want to, convert it back to RGB (since MPix states their colorspace requirement is sRGB), and saved the new file.
I had MPix do 2 prints of my converted B&W file, 4) they converted it to sepia and printed it on their color paper, and 5) they printed it on B&W.
I did not have any tests done on the metallic paper.
Results:
MPix B&W prints from File#1, the RGB file, were exactly what I would expect from a file that was converted from RGB to greyscale using "Mode." The tonal range is heavy in the middle range, i.e., the print looks muddy. It is the same as what happens if one takes a color negative and makes a print on B&W paper on a darkroom enlarger using chemicals. Prints from File#2, my B&W conversion file, looked much cleaner. The advantage to splitting the channels is that it is better at clearing the middle range, giving better contrast and making the image look more like a traditional B&W print. I also like the surface of the Ilford B&W paper better -- it's flat and more matte-like.
The low-down: from my experience, whether I print on my Epson, or have MPix make the print, if I have them print a sepia or B&W that I have converted myself in Photoshop. I hope this helps.