hey i use pocketdivxencoder it converts almost any format video into pocket pc format even psp ipod and a few others you can adjust the video size to fit your screen exactly and best of all it shrinks it. i had the full scarface movie on my phone and it only took up about 550mb. best of all its free. nothing like freeware to expand the love of pocket pcs. try it trust me its the one your looking for.here is the link.
http://www.pocketdivxencoder.net/EN_index.htm