Now that you searched and downloaded your favorites Youtube videos and are ready to convert them here is a small list of Youtube to Ipod Video conversion Applications.

Free YouTube to iPod Converter 2.7
Download you favorite video directly from YouTube and convert to your iPod, PSP or a mobile phone with one mouse click!

iSquint (mac)
It is an iPod video conversion app for Mac OS X.
It’s many times faster than QuickTime Pro, works with almost all popular video formats, and it’s infinitely free-er.
It’s also really easy.
Just drag in your file, and click Start.
You can also choose “TV” or “iPod” size, set your quality, or even go all-out by playing in the Advanced drawer.
On a 1GHz G4, iSquint can convert most video files to iPod-screen-sized videos in realtime.

Features:
- Fast MPEG-4 and H.264 conversion from almost every popular video format, from 3GP to XviD.
- QuickTime Pro and DivX codec not required.
- DivX/XviD AVIs, all forms of MPEG video, and many other formats QuickTime chokes on are supported.
- Batch Processing of multiple files. Save in-place, or to a different folder.
- Automatic aspect ratio detection. Anamorphic MPEG-2 and HDV detected too.
- Quality slider. Leave it as is to trust me, mess with it if you know better, or completely ignore it and play with the…
- Advanced settings drawer. Change every aspect of the conversion process.
- Just a few of the supported formats: .mov .mp4 .avi .dv .mpg .vob .3gp .asf .wmv .flv .m4v

AVS Video Converter (windows)
Converts videos to any available format:
AVI (DivX, XviD, etc.), DV AVI, MP4 (inc. Sony PSP and Apple iPod), WMV, 3GP, 3G2, QuickTime (MOV, QT), SWF, DVD, VOB, VRO,MPG, MPEG 1,2,4, MOD, DAT, VCD, SVCD, ASF, ASX, MJPEG, H.263, H.264, Real Video (RM, RMVB), DVR-MS, MKV, OGM, FLV (see the Supported Formats table for more detail).

Videora iPod Converter
Videora iPod Converter is a free iPod video converter that converts video files, YouTube videos, movies and DVD’s so you can play them on your iPod. The software, developed by the creators of Videora, can convert all types of video files (avi, divx, xvid, flv, x264, vob, mpeg, DVD’s, YouTube, etc.) into the proper video formats (MPEG-4, H.264) that play on the iPod.

HandBrake
HandBrake is a GPL’d multiplatform, multithreaded DVD to MPEG-4 ripper/converter. HandBrake is almost the default choice in dvd to quicktime conversion.

Supported sources:
Any DVD-like source: VIDEO_TS folder, DVD image or real DVD (even encrypted)
PAL or NTSC
AC-3, LPCM or MPEG audio tracks
Outputs:
File format: MP4, AVI or OGM
Video: MPEG-4 or H.264 (1 or 2 passes or constant quantizer encoding)
Audio: AAC, MP3, Vorbis or AC-3 pass-through (supports encoding of several audio tracks)
Misc features
Chapter selection
Basic subtitle support (burned into the picture)
Integrated bitrate calculator
Picture deinterlacing, cropping and scaling
Grayscale encoding

Apple Quicktime
The standard video player for mac users let you converts any video format to the ipod.

Youtube Video to iPod 4 (Windows)
Youtube Video To iPod is easy-to-use download-Convert software. Download and convert YouTube videos for iPod, PSP. The program loads the video compressors dynamically on your system for the best power and flexibility. Version 3 improves video compressors functionality.

Credits:

http://www.versiontracker.com

http://lifehacker.com/software/featured-mac-download/download-and-convert-youtube-videos-for-your-ipodiphone-with-tubetv-285591.php

http://www.techcrunch.com/2006/11/14/put-any-youtube-video-on-your-ipod/

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whataboutmac.com