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I have a Celeron 600 MHz and it takes me about 2 hours to encode a divx file of 700 MB for the Axim
I also use VirtualDub and the guide that I found at pocketmatrix. So the sound is mono, 22050 Hz
One odd thing is that the first movies I resized (and rotated) were only about 100 MB. Now I can't get below 170 MB. Also I find exactly one corrupted frame in every movie I try to resize. This also seems unnatural to me.
The best way of saving time is using Job Control and perform the conversions overnight.
Also I recommend, when you want to transfer the movie to your card, a card reader. This saves me an awful lot of time. It once took me 45 minutes to transfer a 125 MB video. With the card reader it took about 4 minutes.
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