I've tried a lot of converters and the program I think's working best is Videora. You can download it from here.
Videora iPhone 3G Converter - Free iPhone 3G Video Converter
Videora iPhone Converter - Free iPhone Video Converter
They offer a converter to just about every device out there so if you ever need an converter, check their website :D
In the program you can choose between two different modes. Advanced and basic. In advanced mode you must choose between things like MPEG-4 SP, QVGA, H.264 etc.. In basic mode you just type the name of the new file and then you get to choose the quality on a scale.
It's a nice app and I really think you should try it out. Hope this helped you:D

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