FFmpeg
From MITVWiki
FFmpeg is a collection of free software libraries that can record, convert and stream digital audio and video in numerous formats.
It is primarily utilized in the Gnu/Linux environment to transcode media files into various codecs, but can also be used in MacOSX and the Windows environment. MediaCoder is a windows based encoder that utilizes FFmpeg.
It usually needs to be compiled due to legal issues with distribution of codecs. For Ubuntu instructions are here https://wiki.ubuntu.com/ffmpeg
Once compiled with the proper libraries you will be able to encode into many different formats. H.264 is one of the highest quality codecs to utilize.
Instructions on how to utilize FFmpeg to encode H.264 video for I-pods also good for internet video. http://rob.opendot.cl/index.php/useful-stuff/ipod-video-guide/



