I downloaded some videos off of YouTube from
KeepVid: Download and save any video from Youtube, Dailymotion, Metacafe, iFilm and more! (on High Quality which downloads it as an MP4) and they're working fine on my Droid. No syncing problems at all, the sound is wonderful and the video isn't choppy either. So if you could figure out what they download it as then you can adjust all of your videos to those settings too