Converting them doesn't necessarily make them worse quality. Depends on what the source is. It takes 10 minutes I don't watch a ton of films on phone so it's hardly an inconvenience. I will check that player out anyway.
Hi if you register at iphone4idiots they have a free movie database where you can download movies / tv shows for the iphone. Some of the links may be dead but there is quite a huge selection to choose from. Also all the movies are already in quicktime format for the iphone. iPhone4idiots