I work in instructional technology. So I've played with converting videos for my job a lot. Handbrake seems to do better conversion than Mediacoder and SUPER. It does an amazing job, even with HD content. I use it to convert videos for my Droid and for the 360 at home. I posted a lot in that thread about my experience with Handbrake. I'll be happy to answer any specific questions. If you use the iPod Touch/iPhone setting (which I recommend), be sure to change the width to up to 854 (Droid resolution). You want to be sure to use the beautiful screen to its full potential. If I remember off hand, iPhone is only 640. Plus make sure the audio is Stereo. That's about it. I didn't know Handbrake updated. I'll remote into my computer at home and install it. As for video players, I recommend mVideoPlayer. It's free and does most everything Act1 can do. It won't fix your stuttering issue, though. No player will as it's either the video itself or your Droid chugging. I had issues with videos on a couple of ROMs (if you're rooted), but it's been smooth sailing lately.