Eliminate the middleman with iRecord from Streaming Networks, letting you record video directly onto an iPod or PSP with no computer in between. Just hook it up to any analog video source, press one button on the iRecord and thar she blows. It does all the compressing for you using H.264/AVC for video (at 3 hours of video per gig) with AAC for audio, and MP3 for music.
This is not the first attempt at such a device; there's the iSee recorder we showed you last January that just came on the market last month to mixed reviews, intended more as a video player enhancement for iPods that aren't equipped for such things.
The iRecord is cool stuff. Compressing into H.264 for $200? Sounds like a bargain. Now if you can just somehow get used to watching video on such a tiny screen, the iRecord might just be worth it.