[Magnetron]

You guys should use Megui for the state-of-the-art codec which is x264, and there is also Xvid for DVD compliance. It comes with presets so the encoding settings can be made compatible with playing the videos on iPods, blu-rays and so on.

It is not user-friendly at first but it is easy to learn after the first few days. I can help you out if you have any problems.

Don't use common free video converters, they all suck dick.