I've looked at my media player and tried searching through some files, but I just can't seem to find the format for videos.
At least that is what works best for me. I use Avidemux, start with the iPod preset, adjust the video bitrate to something like 600, change the scaling to use Lanczos3 and possibly increase the audio bitrate to 160 kbps. Those settings always work for me, and leave subtitles readable.
FP