Easy iPod/PSP movies with Instant Handbrake
By default it's set to crop the video when necessary (4:3 for iPod, 16:9 for PSP), depending on which device you specify, but you can elect to maintain the video in its original size. Video formats are MPEG-4 or H.264 for the iPod, and MPEG-4 for the PSP.
Like its big brother, Instant Handbrake is free and available here.
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