"I downloaded a bunch of AVI movies from the Internet. How can I convert these AVI files to something I can watch on my iPod?"
I frequently mention WinFF as my favorite solution for converting files between various formats. Converting AVI files to the iPod compatible MP4 format is no exception. WinFF is the app that will do the trick with the least amount of effort. One of the reason's I'm picking WinFF to convert from AVI to MP4 is because it supports batch conversion, so you can line up 20 or 2000 videos to convert and walk away. When you're finished converting simply add the MP4 files to your iTunes library and sync your iPod to watch the movies on your iPod. Here's how it works:
Make sure you've downloaded and installed WinFF before you start.
Add the AVI video file or files you want to convert to WinFF.
Choose XviD for iPod in either 4:3 or 16:9 mode, depending on whether you video is full screen or widescreen.
Select the output folder where you want to store the videos. (The iTunes\iTunes Music\Movies folder in your Music or My Music folder is the default location where Apple puts movie downloads)
Click the Convert button to start converting your movies from AVI to MP4.

When you're finished converting the files, open iTunes and choose File > Add Folder to Library to add the files to your iTunes library.
