Gee I did it. And I have never done it before. And I didn't do much - although I did read the instructions. The second section caller 'Player' I think is where you choose what you want the video type changed to. I already had a Video TS Folder on my drive. I chose it from that lower section, chose iPod Video and clicked go - or something like that. When it was done the proper file was inside iTunes as I had made that choice among others when starting.
Then I connected my iPod and went on a trip and watched the movie.