I tried using handbrake with 0% success rate, app stopped working everytime, don't think has anything to do with settings I had, as I followed a couple of the guides exactly. idk, maybe doesn't work in Win7, don't think I tried compatibility mode though.
HTC HD Encoder, mentioned way earlier (from XDA Dev) is by far the best app i've tried for encoding movies for Droid. But, that app, along with EVERY other app I tried, and there was a lot, does not like VC-1 codec, first use MeGUI to transcode to x264, then Encoder works as it should. Actually the app Super worked to convert VC-1, but not well at all. MeGUI, also working on profile for that to just do straight convert for Droid and to not have to do 2 encodes. That app available
HERE (free), I can post Droid preset once finished.
Question though, as I've heard varying answers, what is optimum bitrate for Droid movies/videos? I was told, and have been using 768 for vid, but see ppl suggesting up to 1500. My 768's def look good, but can tend to jump a bit, thinking should be higher. Maybe 1200....?? be helpful to have this info for preset.