H.264 performance on iPod Classic 80

I was trying to figure out the best codec and format to use to convert video to view on my iPod Classic 80Gb, and yet still preserve enough quality in order I migrate from iPod Classic to iPod Touch (hey one can always dream :> ) And then I found out a hard reality: my iPod Classic 80Gb does not support h264. So instead I should use "Apple TV MEPG-4 High 480P(640 x 480)" option under Xilisoft DVD Ripper Platinum.

Well, at least I figure this out when I have some spare time, like during Christmas season.