Convert Video to iPhone/iPod
According to the manual and the help windows, I should be able to select or right click on a video file in the iTunes library and "Convert Video to iPhone/iPod." However, I do not find this function. All I see is "Convert to mp3." I seem to have the latest version of iTunes 7.7.1.
As explained in this article in the Apple Knowledge Base, You can convert most videos to work with iPod (emphasis added).
Unfortunately though, iTunes supports some video files that cannot be played on iPods. So it's likely the reason you're not seeing the option to "Convert Video to iPod/iPhone" is that the files are not encoded in a certain way .