I use Avidemux myself. Free (open source) and available for all platforms (Linux, Mac, Windows).

I recently encoded Avatar, mpeg4 (h263) 1600K, 640x360 with 192K AAC audio. File size is just under 2GB and it looks and sounds amazing! I originally ripped and re-encoded the DVD version, then later did the BD version. The HD source does produce a better result, but on the small screen it's not a big difference. Not sure if it's worth the extra time and effort, since a rip/encode of the HD Blu-ray literally takes days, vs hours for the DVD.

Anyway, I highly recommend Avidemux. It's a very powerful and versatile encoder. I'm working on finding the correct h264 settings for the 5800, the phone is VERY picky about h264, but the default mpeg4/h263 settings work great.