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I like to use mactheripper. Then you can join the vob files easily with the "cat" command in terminal or with dvision. Next use openshiiva: http://openshiiva.sourceforge.net very easy to use, allows for easy cropping and encodes audio along with video. Final product is high quality mp4.

I'm having the same problem. iSync 1.5 will not recognize phone. bluetooth sees it as "other" instead of a phone.