***DISCLAIMER : I am providing this guide as a way to encode video files that you LEGALLY OWN, whether that is a DVD or any other format, in no way does this post condone the converting of illegally obtained video files.***This guide is (hopefully) the ultimate guide to getting HIGH QUALITY, 100% Zune compliant, correct aspect-ratio .wmv encodes from almost any source to sync to your Zune. In my tests this consistently produces better quality than encoding through Windows Movie Maker.The first part of the guide deals with getting content off a DVD, the remainder of the guide is the essentially the same no matter what source file type you are using.
This guide uses Encode360, a piece of software that was originally developed for producing high-quality encodes for the XBOX 360, but now supports Zune output formats. Please note: Encode360 is BETA software, this means it still has some bugs, but for the most part it's stable. The limitation to this guide is Encode360 and the files it can open. I would currently estimate that it opens 90-95% of files including XviD, DivX, mpg, avi, vob and many more, with more being added all the time. This guide was first prepared with Encode360 2.0 beta 5.
Ok, on with the guide.
Installing the SoftwareEncode360 uses Windows Media Encoder 9 as it's backbone, thus ensuring compatibility.
Download and install all the software listed on the Encode360 website http://dcunningham.net/encode360/.
This means you need to install
.NET Framework 2.0, Windows Media Player 11, and Windows Media Encoder 9. The author recommends you uninstall ALL codecs, then install K-Lite Full Codec Pack. The links for the latest versions of all this software are on the Encode360 website above.
***Please note, most good codec packs should also work, the point isn't to use k-lite codec pack but to have a clean re-install of codecs, many users here feel that CCCP Codec Pack is much better than K-Lite, I'd probably agree with them, get CCCP from here
http://www.cccp-project.net/***
Download and InstallationDownload and extract Encode360 to a folder of your choice (I extract Encode360 to a folder I made C:\Encode360 just to make it easy to get to)
If your original source is a DVD then you need some additional software. DVD Decrypter from here
http://www.mrbass.org/dvdrip/ and a small app called VOBMerge which you can get from here
http://medlem.spray.se/evilmastr/getfile.php?download=vobm250.zip (just extract this file anywhere, this app doesn't need to be installed - I keep it in my Encode360 folder just for convenience)
Once that's installed you're set...
Ripping the DVD (If you are converting from another file and not a DVD you can skip this step and go to Converting to .WMV below)For most DVDs DVD Decrypter will work, however it is not in development anymore, so it cannot break some of the new encryption on some DVDs. For these DVDs I use AnyDVD from SlySoft in conjunction with DVD Decrypter, it's great software and I highly recommend it, however it's not free.
Insert your DVD and fire up DVD Decrypter.
These are the settings we are going to use, to create a single large .vob file (this file will be 4-8gb in size, make sure you have the space)
Thanks `~ .:valk:. ~`

Once that's in place, hit the big dvd button and wait for DVD decrypter to finish.
For the DVDs that do not work with DVD Decrypter:Try DVDFAB Decrypter.. free here
http://www.dvdidle.com/free.htmYou may need to merge the .VOB files it creates afterwards with VobMerge - free from here
http://medlem.spray.se/evilmastr/getfile.php?download=vobm250.zipConverting to .WMVNow we welcome the people who are converting from other formats!
At this point, everyone has a file they want to convert, whether it's movie.avi, movie.mpg or movie.vob.
1. Open Encode360
2. We'll start by configuring Encode360, this step only needs to be done the first time or when you update to a newer version. Hit advanced settings. This is a screenshot of my settings, my settings are truly designed for high quality outputs, you can adjust the settings to speed up encoding time as follows:

-For codec I like to use WMV9 for better quality, however you can also try WMV8 for faster encoding time, there is a difference in quality but it's personal preference.
-For mode, bitrate based VBR 2pass will give the best quality output, you can use CBR 1 pass for faster encodes.
-Check "Force 2 channel audio downmix"
-Set bitrate automatically for Zune (drop down list) - You must do this to produce compatible files, or the Zune software will re-encode when you try to sync!!!!
-Be sure to check "Automatic Video Scaling" - This will maintaint the aspect ratio of the input source. This means your widescreen movies will remain in widescreen, and you won't get the nasty stretching of people that many other encoders do. It will however mean that you get the black bars at the top and bottom of your screen when you watch the movie on your Zune. Some people don't like this, but it maintains the AR and lets you see the movie as it was meant to be seen.
-Output should be set to 320x240(Zune)
-Resolution to FULL - anything less and the quality degrades a lot!
OK, we're set!!
3. Press the + button to add your file.
4. Once your file appears in the list hit ENCODE.
Encode360 will begin pre-processing, during this time there's no progress indicator, don't panic.
After pre-processing you will get a progress bar.
The file will, by default, appear in the same folder as your source file, unless you specified otherwise. I have set "Create Encoded Files Here:" to the My Videos folder in My Documents, this lets Zune Software pick it up and add it to my library automatically. Now you can sync to your Zune and enjoy a high quality encode!
I hope this guide was easy enough to follow, I welcome any suggestions and feedback. I will try and update it when I feel it's necessary.Additional Tips1. Be sure to queue up multiple files by adding them to the list before you press encode and encode overnight to minimize interference with your own work/use of the computer.
2. Encode360 can be set in, in the main menu, to monitor a folder for new files, and encode when they are detected. Useful if you regularly download video files into the same folder and want them on your Zune.
Current Known Issues1. Due to a change in the way Encode360 processes files, the progress bar doesn't currently work, I'm sure this will be fixed soon.
2. Error:
ERROR] Encode/funcEncodeFile/EncoderPrepare: Attempted to read or write protected memory. This is often an indication that other memory is corrupt.
This error is due to conflicting codecs, this means you didn't complete the installation prerequisites as listed on the Encode360 site, go back and uninstall all codecs and install the k-lite codec pack. ***Another disclaimer: My codecs were not conflicting, so I personally don't use k-lite codec pack, but it's recommended by the author of Encode360***
3. There is an issue with converting 5.1 AC3 sound, I got this from the Encode360 forums:
5.1 Audio issues:
WME (Windows Media Encoder) has problems downmixing 5.1 Audio streams (surround sound) to 2-channel stereo using 2-Pass methods. There is currently no fix for this issue, so your best bet is to use 1-Pass CBR when dealing with a 5.1 AC3 encoded input file. Whenever you select to encode for a Zune device, the “Force 2-Channel Downmix†checkbox will automatically be selected. Do not change this setting, the Zune CANNOT play 5.1 audio and the file will be transcoded upon syncing to your device, wasting your time.