Select a video conversion template from the left column. Two options are available for iPhone (which also works for iPod Touch)--choose either high or low quality depending on your preference.
Click on "Start" to begin the conversion process. This might take some time depending on your computer's processing power and the length of the video. The converted file is saved in the same folder as the original with the same name but with a .m4v file extension.
Drag the newly converted file to your iTunes library to import it to your iPod Touch.
The iPod Touch can read many audio and video formats. It cannot, however, read AVI files, a common video format found throughout the Internet. In order for these files to be transferred to an iPod Touch, they must first be converted to another format. Many available programs, both free and paid, can convert between video formats, allowing the AVI file to be stored in a format playable by the iPod Touch.
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