I convert to XviD, since it require less processing power to both convert and playback compared to h.264. Infact, h.264 plays too slowly on the touchpro2.
For me, when the sum total of the XviD bitrates begin to exceed 800kbps is when stuttering kicks in. You can try the setting: XviD 640x360 (16:9), 700kbs video and 112kbs audio.
You can use WinFF to batch convert videos. I wrote a bit introduction on WinFF for those interested:
fssi.x10hosting.com/winff.htm (It is a free software, I'm not affliliated.) Only problem with this software is if you want it to convert to specific bitrates, sometimes you have to go to "Edit -> Presets" and modify the command line settings for each preset. Therefor users who aren't used familiar with command line ffmpeg settings might not find it as useful.
In which case,
AutoMen is another video converter worth taking a look at.