Right now Apple doesn't support importing DVDs or Flash video onto the iPhone via iTunes, but that doesn't mean it's not possible. ModMyiPhone have put together a great tutorial on how to turn existing media that's so far incompatible with the iPhone's video player into a format it'll support, using iTunes at the final stage to synchronize it all together.
Yes, it requires a little more preparation than surfing to a YouTube video, but given the comparatively small catalogue of iPhone formatted content compared to other media out there (and the expense of using EDGE to watch a feature-film length video) if you view your handset as the video iPod you've always wanted then this might be the tutorial for you!
All the software required is freeware or shareware, and their guide includes sections on the following:
Part 1: How to convert DVD movie to iPhone (Windows)
Part 2: How to convert AVI, WMV, MPEG, RM, RMVB, ASF, MOV, DivX, XviD, MPG to iPhone MP4 or H264 format (Windows)
Part 3: How to convert DVD movie to iPhone on Mac OS.
Part 4: How to convert video to iPhone on Mac OS.
Part 5: How to add movie and video to iPhone.
Part 6: How to convert flash, swf to iPhone.
Until the preformatted content increases, this might be the best way to get new video footage on your iPhone!
