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I know I'm late getting in on this discussion, but I just now got around to converting some of my movies for use on the NC. I use Daniusoft Media Converter. It's a great program. You can convert to output files with one touch basically. The program has many output settings optimized to many different devices, including iPod, Android, Blackberry, Zune, and LOTS more. For me, I just selected the video I wanted to convert, told it to convert it to the Zune mp4 setting (I have a Zune and wanted to be able to use that too...the Zune setting works great for the NC too), and told it to place the converted file in whatever directory I wanted, and voila! Worked like a charm. Didn't have to mess with any other settings at all.
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