two things on this subject folks
first for everything you could ever want on video conversion ripping etc etc etc
http://www.dvdrhelp.com is the best site you will ever find.
Second tmpgenc a versitile conversion program that converts to all kinds of vcd and dvd mpg formats, I even have some templates for it for PPC sized formats and conversions. I have found it to be excellent for this and have already converted full length films for use on my X5 and I only had it a fortnight.
If you cant find the template drop me a note here and i'll upload them using these and pocket music and video player works a treat.
Now if only the speaker on the x5 wasnt so poor. (the only gripe I have with it so far)