I use DVD Shrink to rip my DVD's and then Handbrake to convert them to ipod compatible MP4. Then I open iTunes, click Video, and then open the location I have for the file, and drag and drop. (Using Windows, btw)
From some of the posts I have read on here, it seems that MP4 video, doesn't always mean COMPATIBLE video.
My best advice is to go download handbrake(FREE!!) and use it to make sure that your video file is compatible with ipod/iphone.
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