I don't know if anyone has a fix for this but when I convert AVI files to the proper iPhone video format, they always become out of sync for me towards the end of the video..
but i tried that cucusoft dvd to iphone converter..and it works perfect..thing is..u need to buy it otherwise they put a logo in the middle of your screen...
also have you tried handbrake? i heard its pretty good. i got it installed.. just havent converted any dvd's yet.