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I'll chalk up another vote to using Handbrake. Very easy to convert videos with that program.
I also use MPEGStreamclip to clip plays on my Mac. It allows you to save your clips in almost every file type out there... and it's free.
I've also dabbled in VLC, but I like the MPEGStreamclip program as it allows you to fast forward the video a lot easier, and you can also rip DVDs onto your computer in a movie file (this allows me to upload my games onto my iDevice).
Finally, I use iMovie to edit, add text, add transitions and slo-mo replay to my clips.
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