doubleTwist does it easier than anything else for me. Handbrake took FOREVER. Total Video Converter is fast and it does convert into formats that will play and look good, but it is more involved than doubleTwist. doubleTwist handles the convert AND the copy seemingly at the same time. TVC can handle the same, but you have to direct it to save the converted video to the sd card. In to convert and copy at the same time, the phone has to be connected and mounted on the PC and you cannot disconnect it while the conversion is taking place or you will lose the output file.
The only drawback with doubleTwist is that is doesn't allow you to reduce the bitrate to a more reasonable setting for the tiny screen. There's no need to have a bitrate beyond what the screen resolution can show, because it won't look any better and the added file size of a over rated file will waste space on your SD card and take longer to sync with the phone.
These are the settings I used successfully with Total Video Converter:
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Audio Channels - Auto
Audio Codec - aac
Sampling Rate - Original
Bit Rate - 96kbps (audio)
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Video Codec - mpeg4
Frame Rate - 23.97fps
Bit Rate - 640kbps (video)
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Under the Video Resize tab, Check "Original Size" unless the original size is greater than the Droid's screen size. In that case, you will have to reduce it proportionally to fit the screen. The width should not be greater than 848 and the height should not be greater than 480. There are cases where the video may not fill the screen.
Aspect ratio should be set to whatever the original file is.
If you connect your Droid while TVC is converting and select the Droid's sd card as the output folder for the converted video, it will convert and transfer at the same time.
At this point, the file should play on the droid with the gallery player
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