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Today’s quick tip will show you how to use free tools to convert AVI video files to a format viewable on the iPhone using your Mac.
First CTRL-click and save this test DivX movie to your local machine. Next download ffmpegX and its required binaries by following the instructions on this page — if you have Mac OS X 10.6 this tool will also work on your system.
After installation, drag an AVI file to the ffmpegX application and use the settings in the screenshots above to convert the video to MP4 format. After the MP4 video file is created, drag the file to iTunes Movies folder, connect your iPhone and tick the name of the video in the Movie tab, then click the Apply button.
After ejecting your iPhone, you will be able to watch your converted movie by opening the iPod application and tapping the movie in the Videos area as normal. Enjoy your converted video!