Just figured I'd let you know that you can get WinX HD video converter along with their DVD ripper for free until March 15th. It doesn't have a specific profile for the Droid but I just set it to do an MP4 at 854x480. I'm enjoying my recently ripped "Oh Brother, Where Art Thou" on my Droid as we speak!
Download WinX HD Video Converter Deluxe - All-in-one HD Video Converter
Just download from that link. The license code is just above the download link. It's "WINHCD-GIVE-AWAY-2010"