Nero Recode
This is what I use to make mp4 files for my friend's mobile phone, and I have heard that iPod video uses mp4 too.
So, you should be able to make videos for your iPod...
Edit: I was kinda right:
http://forums.afterdawn.com/thread_view.cfm/266581 (2nd post)
You can probably do the same thing with other video files (avi for example)
And here is the same thing with screenshots:
http://arstechnica.com/guides/tweaks/ipod-video.ars/5
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