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Pocket DVD Studio is not worth the money, it has by far the worse pixelation on fast action scenes of any I have tried even sliding the bar to the highest setting. I converted Kill Bill vol 1 to a size of 384MB and it still looked bad. I then tried DVD to Pocket PC set for a 256MB card and got a movie at 210MB with alot less pixelation. I don't like that you cannot crop and the picture looks squished when done with DVD to Pocket PC but at the moment this is the best I've seen, including many of the home brew recipes in the guides I've found around. It's always the fast action sequences that look nasty no matter if its Xvid, Divx or WMV.
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