So I have been looking around about converting videos for the Droid X and have not found any really solid info so I am making this post to clear up some confusion about it and show how it is done and what is best way to do it. I will be using all open source software so it is available to everyone and you can stay away from crappy shareware/freeware and not have watermarks on the final video. All that aside let's get started!
Your going to need HandBrake, this is a VERY powerful tool to use and has many features.
Now once it is installed fire it up and your screen will look like this
Select your source video by selecting source and "Video", If you have many files click "Folder" when this is done it will apear as
Where it says "Anamorphic" Change it to "None" So you can edit the resolution
Now set the size to 854 x 480, This is the Droid x screen size and the videos will look crisp and fit to the screen without stretching. You may have to deselect "Keep aspect ratio"
Now go to the "Video" tab and enable "Average Bitrate" and set it to 1500
Now go to the "Audio" tab and make your settings like mine
The last step is to name it, where it says "Destination" hit "Browse" and make a name like this or anything
And FINALLY! the last step, Hit "Convert" and when the conversion is done put the file on your SD card. Go to Files on your phone, find where you put it and you can open it natively with the android stock video player. NOTE: I have a six core cpu so I can convert 1080p videos in under 20 minutes, But if you have a single core like a atom processor dont attempt to convert blu ray because your pc will probally go to a stand still and take forever to convert.
I made this tutorial and you can use it elseware just give me credit please. I hope this helps someone, And hopefully this can get a Sticky
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I threw in a sample video with these settings to see how it works on your device before you convert. Download and unzip to SD card, It looks perfect on my phone