I bought an 8GB Sansa Fuze with an 8GB microSD card a few days ago. I have 100's of AVI movies converted (using FairUse Wizard 2) from my personal DVD collection. They were originally converted to run on an Archos 605, which I no longer own, but the movies run fine on my Samsung NC10 netbook. The majority of my movies are widescreen and they convert OK for running on the Sansa Fuze using the Sansa Media Converter (downloaded via Sansa Updater); however, they are much too small to be viewable. So I began looking for a way to convert a few of my widescreen movies to a 4:3 pan-and-scan version so I can use the full-screen on the Sansa Fuze.

So here is what is working for me. To resize my existing videos to use the full-screen (220x176) on the Sansa Fuze, I'm currently using XMedia Recode using the following settings: Output Format: SanDisk, SanDisk Sansa Fuze (avi) with Filters Resolution set to 224x176, 4:3, and Pan Scan; I didn't change any other settings (each movie conversion takes about 35 mins). After converting movies with Xmedia Recode, I then use Sansa Media Converter to convert them and transfer them to the Sansa Fuze. The quality, while not great, is acceptable for keeping me entertained in emergency situations (eg, in a hospital energency room).

Know yourself first; help others know themselves

As mentioned in my previous reply, I personally use, and highly recommend, FairUse Wizard 2. After converting the DVDs, I run the converted file through XMedia Recode and Sansa Media Converter (which can be dowloaded via the Sansa Updater software) to load them onto the Fuze. 

Know yourself first; help others know themselves

Fully Interleaved AVI
MPEG-4 Simple Profile level 1 or 2
Up to 512Kbps
QCIF+ (224x176)
Up to 20 fps
That the parameters you need. So you can got a DVD to AVI converter
for your sansa