It is in mp4 format. I tried to convert it using several different programs listed on this site and got the same result with each of them.
I missed something in my explaination... so please allow me to clear it up. When I add the file to itunes it shows up under "purchased" over by the devices. If I click on purchased it brings up a screen showing the video I have added. If I click it on that screen it will play in Itunes. However when I switch over to the videos tab that is when I can no longer see the video I have added. I double checked that it definately is mp4.
I
also tried the apple test movie. I followed instructions found here:
http://support.apple.com/kb/HT1211
Step number 5 failed - It showed converting but then never showed a converted copy. It tried it several times.
I am very confused as to why this won't work. Any help at all would be greatly appreciated!!