Not that I'm against freeware, but I bought DivX Pro for $30 (you need the MPEG2/DVD plugin) http://www.divx.com/divx/windows/buy/?prima=homewinbuy
, and I use the Converter application that comes with it, and use the Portable settings. This works great for me, lets you batch them up and encode in the background, it also is multiprocessor aware. It's worked for me everytime, I mostly convert MPEG2 recordings from my MythTV PVR to DivX to watch on my 604wifi. I also have the Cinema plugin and native MPEG2 support works too, its just nice to be able to store a few more shows (only have 30gb) because of the decent compression you get with DivX.