Transcoding Videos Using VLC

I found this great how-to for using VLC to converter/shrink/transcode videos. This is so you can shrink them to play on your ipod, iphone, Android device, whatever.

Its a bit slow as I think it actually plays the file normally as it saves the output file. Regardless, It was simple and I got it working on my Mac although the preferences menu entry is in a different spot (under the VLC menu entry ).