ffmpegX, it will do it for free. the only probelm is that you will need to download 3 other applications before it really works. all you do is drag and drop the file, then select what you want it to turn into. there is even an "iPod for TV", "iPod h.264", and even a "PSP" mode. just google ffmpegX, and what ever other programs it needs.
of course it isnt free (sort of). its $15 but you can just deal with the enoying start up window and bypass it by clicking "Let me try for free".
good luck