There is plenty of software to convert your movies to mp4, a format which iPhone would understand. One of the more interesting programs is X-OOM Movies on iPhone. It allows easy conversion of your movies to the correct format on your iPhone. Files supported for conversion are DVD, SVCD, VCO, DivX, AVI, WMV, MPEG, and FLV. You can convert both single or batch files.
You can also record any web TV-shows (including videos from YouTube) and transfer them to your device. The nice thing about this program is that it offers editing like cutting and processing. You can even implement subtitles.

The program costs $29,99. Check out X-OOM page for more info. However if this is too expensive for you there are plenty of alternatives.
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I have purchase the ‘Movies on iPhone’ software but I can get it to talk to my iPhone, Please help!!!!
Much appreciated.
Kevan.