Well as you may know the iPhone 3G plays only mp4 files. There are several expensive video encoders out there but here's how you can get one for free. You will need to download eright super. A free ware from erightsoft.com. http://www.erightsoft.org/GetFile.php?SUPERsetup.exe Then install the software on your comp. Run super and choose your device(iphone 2g, 3g) etc., The drag and drop the video file to be encoded into the list.Choose the sound quality(160 k-bits for best quality) and video quality(640x480 is the highest) You can also choose the aspect ratio 4:3 works best for my phone(iPhone3g). Click on encode. The encoded file will be placed in the output directory. Ex: If you installed it in c:\Program Files\Super then you will find the encoded file in c:\Program Files\Super\output. After this you can download itunes8. The best part is that itunes8 unlike the previous versions allows you to drag and drop videos to your iphone. Thats it!