I have never used either of those converters mentioned, but I have used one that I think is a very good one. And I also found out that watching Video Fullscreen is not always a conversion issue, but a Player issue. For example, with the native movie player that comes with the Droid other than the video you shoot with the Droid, there is not a lot of formats that will play full screen.
There is a media Player in the Market called Meridian that will not play Full Screen either. However there is one in the Market that I can personally vouch for that does have the Option to play full screen in the settings, (Brightness settings and more), because I've been using it on a daily basis to watch the movies I'v converted to .mp4 H264.
The Player is called "Act1 Video" I forgot how much it was, but it is definitely worth it. Now as for converting movies, I use E.M. Total Video Converter, here are the setting I use, lets just say it took about an hour and a half to convert Star Trek (which isn't a small movie), and the size was about 720 mb.
To Convert: E.M. Total Video Converter
My Settings: (No freezing, stop and go, and audio is in full sync)
Profile name: iPhone H264 normal quality
Target type: .mp4
Custom audio sample rate: 48000 b/s
Custom audio bit rate: 48.000 kbit/s
Audio codec: aac
Custom video frame rate: 24.000 /s
Custom video bit rate: 768 kbit/s
Video codec: h264