The main page at Cnet,com has an article my jasmine france about how to convert your videos into ipod playable form.She says:
there r 3 steps
1) Download AVS Video Converter.
You can try out the Windows-only Video Converter for free, but a watermark will appear throughout your video. If you're serious about converting video, purchase the program for $29.95; the variety of supported file formats makes it worth it.
2) Launch AVS Video Converter.
3) Select output file type.
Click the To MOV button along the top of the interface. When creating a video for the iPod, always select the QuickTime file format (MOV).
4) Choose video file.
Click the uppermost Browse button on the right. Navigate to the location where you keep your video files, and select the video that you would like to convert. Click Open.
5)Select the output location.
Click the bottom Browse button on the right. Choose the location where you would like to save your converted video file. Click Save.
6) Adjust the settings.
Click the Edit Profile button on the right and fill in the following information:
Name: QuickTime--for iPod
Description: Video: MPEG-4, FrameRate: 30 fps, Frame Size: 320x240, Audio: AAC LC - 128, 44100, Stereo
Video Format: MPEG-4--high quality
Frame size: 320x240
Audio Format: MP2/4(AAC LC) 128Kbps
File Type: MOV
Click Convert Now and step away from the computer (processor performance will be seriously affected during conversion). If you want to watch the progress while you convert, click the Advanced button until the viewing screen pops out of the bottom.
Note: AVS converted our original 22-minute MPEG-4 file at a rate slightly faster than real time on an Intel 2.8GHz P4 system with 1GB of RAM. Our source file was 224MB, and our resulting iPod-compatible file was 199MB.
8)Transfer video to the iPod.
Open Apple iTunes 6 and drag the newly converted video file to the library window. If you have selected ''Automatically update all videos'' for the video preferences for your iPod, the new video will automatically transfer when you connect the player. If you have selected ''Automatically update the selected playlists only,'' make sure that you drag the new video to one of the selected playlists.
Note: You'll probably want to update the information of the video when you move it to the iTunes library. To do this, select Videos from the left-hand column and go to list view. Then, click the file for which you want to edit info and select Get Info from the File menu (or simply right-click). You can edit the boxes found under the Info tab.
hope it helps