Update 2: Took 18 minutes for doubleTwist to convert *and sync* a 699MB DivX/AVI file to the Droid. This is on a 2.4Ghz quad core machine with SATA drives.
Also note, Apple podcasts sync just fine, but they are formatted for an inferior screen and therefore do not fill the Droid's screen
So far, I'd say doubleTwist is the way to go even though it has its quirks.