I've had matters with Handbrake. It only didn't move for me. I've also used PSPVC due to the customization choices. No go.
I've made certain the file output is mpeg4 or h.264 mp4. I am sure sound is set for 160kbps or lower.
I demand a powerful video converting software for this device that works, AND this is customizable. converting video tool would not makde me to make a custom resolution of 800x480. All of them are presets. The most important functions for me are customizing resolution for 800x480, sharpening, also something which actually runs.