I love the real format (rm), and I use a nice prog called "deset pocket video converter symbian edition". it can even rip entire dvds into rm.
here are the settings I use:
Resolution: 320x240
Video Bitrate: 160-180
Audio Bitrate: 48-56
FPS: 12 (The phone doesnt support fps over 15, so 12 is a great choice)
or if you dont like rm, you can use "imtoo 3gp converter", it converts to 3gp, mp4 etc... but i have both and i can say that rm is much better at higher bitrates.
good luck



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