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I can't help you with Fairuse, I use PocketDivXEncoder for converting from the 8GB image files to an .avi of less than 1GB. Simply select the .IFO file of the movie you want, select the compression settings you want (it calculates the estimated size of the movie for you) and press the decode button. Very easy, because it is designed for compressing to Pocket PCs and Palms. Other more complex programs might give you a few more options such as DVDx but you will need to guess the settings that are best for you PDA.
Sorry I have never used Fairuse...
Cheers
Adrian
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