Here is a site I found that gives step by step video converting. Tried it last night and all the movies work and are of great quality on my eris. I used any video converter instead of super as they describe. Set video to 480x320 bit rate to 512. All the movies converted to around 530mb. Hope this can help some.
G1 Video Encoding: How To - xda-developers
G1 Video Encoding: How To - xda-developers