I found decent video converting software for a mac
Snowfox software makes a few programs for video and audio tools. I played around with their dvd and total video converter last night and this morning. It had some decent results. It isn't perfect but its done a good job with converting divx or hd mkv files to files compatible with the audio and video specifications of android. I put in the video size of 800x480 and bumped up the video bitrate and adjusted the sampling and bitrate of audio and let the trial do its thing. Good results.
I also stumbled across a miro video converter. That program does a good job as well but basically does not have any settings to tweak. It has phone presets. I picked the one I thought had a high video resolution, nexus one, and let it do its thing.
I have been having a difficult time trying to get iphone and ipod presets to play good with handbrake as the encoder, but haven't had much luck yet. I am trying to get as good of quality as I can and these are the results I've gotten so far. I thought I would share this with you in case anyone might be wondering. Miro is free as in beer.