Well, I’m on a bit of a run here with my new samsung D900 mobile phone, the latest being what are the best settings to compress a movie to watch on my phone. The phones resolution is 320×240, which I think is similar to an ipod. I use Handbrake to encode DVD’s, you can also use these settings to export from Quicktime pro, but Handbrake is free.

FILE FORMAT: MP4
CODECS: MPEG-4/AAC Audio

VIDEO:
OUTPUT: 320×240 You may need to CROP to get the aspect ratio right, for example, 150 or so pixels off each side, depending on the original. Just play with the crop settings till the picture looks OK and not stretched.
FRAMERATE: 15 frames per seconds (fps) (Normal framerate is 25fps, but it’s hard to notice this slower framerate except for panning which is a bit staggered.)
AVERAGE VIDEO BITRATE: 200kbps (Any lower and you start to notice a decrease in quality. I tested 850, 500, 300, 250, 150 and 100kbps.)
2-pass encoding
AUDIO:
FORMAT: AAC
BITRATE: 128kbps.  (At 96 I could notice a discernable decrease in audio quality.)

I saved this under a profile called ‘phone’ and it works well. A 2 hour movie takes about 12 hours to encode, but comes out at about 500MB and is almost perfect quality on the small screen.