The popularity of audio and video iPhone fans is growing, but the iPhone only supports H.264 video format, MP4, M4A and MP3 audio, so if you want to watch movies on your iPhone you have to visit the iTunes App Store.
However there is now a video converter which is fully compatible to convert video formats to the iPhone and is WinX Free iPhone Video Converter, and the best thing I sits completely free from winxdvd.com
WinX Free iPhone Video Converter supports AVI, RM, RMVB, MP4, MPEG1/2, 3GP, 3G2, DVIX, WMV, ASF, XVID, and FLV formats and it only takes 3 steps to begin the conversion process with everything automatic.