A few of my pals have been lucky enough to get the new iPod with video capability. For putting movies onto the iPod, I would recommend Moviepod by Nullriver. I haven't used it but have PSPware (for Mac) for my iBook and PSP...and love it. It converts movies really easily :: just drag file into the window and it does the rest. Moviepod uses the same procedure - check it out... Its $10 (£7) to buy and if it is anything like PSPware, its well worth it. It comes in Alliance (Mac) and Empire (Windows) flavours to suit all my pals... although, Jo, we need to get you on a Mac too ^_____^
Also, check out http://video.google.com/ for funny clips to put on your iPod or PSP. They even give you the option of a specific iPod or PSP download making it real simple to do.