FFmpeg (http://www.ffmpeg.org/) is a great tool for encoding movies in any format and works nicely for encoding movies for the iPhone. The main issue we ran into was finding the right parameters for FFMpeg. As is the case with most open source projects, the documentation for FFMpeg is sparse. From Apple’s documentation we knew the [...]
If you updated your iPhone SDK to 2.2 and find that movies no longer play in the iPhone Simulator, it is probably because of the QuickTime DivX component. With the most recent SDK (2.2) this particular component is incompatible with the iPhone Movie Player. You will likely see a message like: Error loading /Library/QuickTime/DivX Decoder.component/Contents/MacOS/DivX [...]