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All information relating to video formats supported by iphone and the appropriate resolution of the video may be had here : The Complete Guide to iPod, Apple TV and iPhone Video Formats | iLounge Article
In this field (dont take it otherwise) , handbrake is the best option , too
Its all about screen resolution. As the iphone's screen in smaller, it needs small resolutions, and as the lcd display is bigger, it needs a larger resolution.
You may play a larger resolution movie in iphone, too. But it will take a lot of unneeded space, and the video output will not be perfect. On the contrary, you may play a small resolution movie in your lcd (by clicking "videos-->fit video to player on resize), but it will be a bit hazy .
So, I think it is better to have a same movie in different resolutions for different players
My Choice is HandBrake. If you dont like it , you may use this :
iPhone Video Converter, iPhone Converter, iPhone Movie Converter
But it is not free.
EDIT: DVD Shrink does not provide a single file. It compresses the video_ts folder.
Yeah I'm not into it if its not free.
So far I've found dvdshrink to be much easier to use than HB. I did only try HB in Ubuntu though...
I may be open to try it again if I had a really easy walk thru.
If I copy via dvdshrink, will these movies be able to be watched in Ubuntu with no issues?
If you have to create a single .vob file, you may try this :
VOB Joiner - join VOB files, merge vob merger, combine vob combiner, Camcorder, MiniDV