| The Zune natively supports only video only at 320x240, 1.692 Mbps, in the .wmv format. The Zune software can convert the following formats, m4v, .mp4, and .mov. All other formats, such as .avi need to be converted into one of the above formats before it will go on to the Zune.
If your converting your .avi's or such, go straight into .wmv format, 320x240, 1.6 mbps. Anything beyond that quailty wise will be just be down converted, and thus wasted. Also by going directly into the proper mode, you will save time on the Zune software re-encoding.
Hope that helps. I have been using Cucusofts Video to Zune Converter. It is cool as I can dump a bunch of avi episodes of a show into the software at one time and it will convert them as a batch. It takes a bit less then real time to convert. | 
