Hello, congratulations on your new Axim soon to come, hope you enjoy it as much as I do mine. I also shrink videos for my Axim using Pocket DivX Encoder, but as far as I know it will only encode a .vid file. There are apps out there I am sure that cross transfer and would handle a .flv file. I'm going to check it out too, as there are several music videos on youtube I want to put on my Axim. I'll let you know if I find anything.
By the way, my rec for the media player for videos on the Axim is TCPMP:
http://www.pocketpcfreewares.com/en/index.php?soft=1080
Oh, I also wanted to ask, do you have a program that captures flash video from the net?? You need that first to download the flash to your hard drive. If you have a program, which do you use?? Thanks