[Nook Color Android Development] britoso:
It could be that I'm on the OC kernel.

Here are some formats that I played just yesteday:

Format : Matroska
File size : 150 MiB
Duration : 42mn 15s
Overall bit rate : 496 Kbps
Encoded date : UTC 2010-03-02 12:00:14
Writing application : mkvmerge v3.0.0 ('Hang up your Hang-Ups') built on Dec 12 2009 15:20:35
Writing library : libebml v0.7.9 + libmatroska v0.8.1

Video
ID : 1
Format : AVC
Format/Info : Advanced Video Codec
Format profile : High@L5.1
Format settings, CABAC : Yes
Format settings, ReFrames : 3 frames
Format settings, GOP : N=1
Muxing mode : Container profile=Unknown@5.1
Codec ID : V_MPEG4/ISO/AVC
Duration : 42mn 15s
Nominal bit rate : 454 Kbps
Width : 624 pixels
Height : 352 pixels
Display aspect ratio : 16:9
Frame rate : 23.976 fps
Color space : YUV
Chroma subsampling : 4:2:0
Bit depth : 8 bits
Scan type : Progressive
Bits/(Pixel*Frame) : 0.086
Writing library : x264 core 60 r900 a9af942
Encoding settings : cabac=1 / ref=3 / deblock=1:-2:-1 / analyse=0x3:0x113 / me=umh / subme=6 / brdo=0 / mixed_ref=0 / me_range=12 / chroma_me=1 / trellis=1 / 8x8dct=1 / cqm=0 / deadzone=21,11 / chroma_qp_offset=0 / threads=3 / nr=0 / decimate=1 / mbaff=0 / bframes=16 / b_pyramid=1 / b_adapt=1 / b_bias=0 / direct=3 / wpredb=1 / bime=0 / keyint=250 / keyint_min=25 / scenecut=40(pre) / rc=2pass / bitrate=454 / ratetol=1.0 / rceq='blurCplx^(1-qComp)' / qcomp=1.00 / qpmin=10 / qpmax=51 / qpstep=4 / cplxblur=20.0 / qblur=0.5 / ip_ratio=1.40 / pb_ratio=1.30 / aq=2:1.00

Audio
ID : 2
Format : AAC
Format/Info : Advanced Audio Codec
Format version : Version 4
Format profile : LC
Format settings, SBR : Yes
Format settings, PS : No
Codec ID : A_AAC
Duration : 42mn 15s
Channel(s) : 2 channels
Channel positions : Front: L R
Sampling rate : 48.0 KHz

Format : AVI
Format/Info : Audio Video Interleave
File size : 175 MiB
Duration : 21mn 46s
Overall bit rate : 1 125 Kbps
Writing application : VirtualDubMod 1.5.10.2 (build 2540/release)
Writing library : VirtualDubMod build 2540/release

Video
ID : 0
Format : MPEG-4 Visual
Format profile : Advanced Simple@L5
Format settings, BVOP : Yes
Format settings, QPel : No
Format settings, GMC : No warppoints
Format settings, Matrix : Default (H.263)
Codec ID : XVID
Codec ID/Hint : XviD
Duration : 21mn 46s
Bit rate : 976 Kbps
Width : 624 pixels
Height : 352 pixels
Display aspect ratio : 16:9
Frame rate : 23.976 fps
Color space : YUV
Chroma subsampling : 4:2:0
Bit depth : 8 bits
Scan type : Progressive
Bits/(Pixel*Frame) : 0.185
Stream size : 152 MiB (87%)
Writing library : XviD 1.2.1 (UTC 2008-12-04)

Audio
ID : 1
Format : MPEG Audio
Format version : Version 1
Format profile : Layer 3
Mode : Joint stereo
Codec ID : 55
Codec ID/Hint : MP3
Duration : 21mn 46s
Bit rate mode : Variable
Bit rate : 140 Kbps
Channel(s) : 2 channels
Sampling rate : 48.0 KHz
Stream size : 21.1 MiB (12%)
Alignment : Aligned on interleaves
Interleave, duration : 24 ms (0.58 video frame)
Interleave, preload duration : 484 ms
Writing library : LAME3.90.
Encoding settings : -m j -V 4 -q 2 -lowpass 17.6 --abr 140

Yes, skip the conversion. Keep that for high res videos, I reserve high res videos for my desktop/laptop.