Using VLC (http://videolan.org) seems to be the fastest and best way to convert video files to an iPod Video-compatible format.

The only thing this Widget does is call VLC with right parameters to convert your video file. After entering the paths to VLC and the output folder in the preferences, just drop any video file on the Widget and conversion is started. That's it!

Of course, VLC has to be installed to make the Widget work. ;-)