psp help

im gettin my psp in the mail soon and i got a 4 gb memory stick for movies/music/etc., a 32 gb for game saves. what converter program is best so i can compress the video files to save space on my 4 gb stick. also, will that program or any other program convert AVI files to files that are accepted by the psp?

all help and recommendations are welcomed

look up xvid4psp.