By following the steps in this tutorial, QuickTime 7 Pro will automatically create an .m4v file containing H.264 video and AAC audio that is optimized for iPod. iPod can play the following video formats:
H.264 video, up to 1.5 Mbps, 640 x 480, 30 frames per sec., Low-Complexity version of the H.264 Baseline Profile audio up to 160 kbps, 48 Khz, stereo audio in .m4v, .mp4, and .mov file formats
H.264 video, up to 768 kbps, 320 x 240, 30 frames per sec., Baseline Profile up to Level 1.3 with AAC-LC audio up to 160 kbps, 48 Khz, stereo audio in .m4v, .mp4, and .mov file formats
MPEG-4 video, up to 2.5 Mbps, 640 x 480, 30 frames per sec., Simple Profile with AAC-LC audio up to 160 kbps, 48 Khz, stereo audio in .m4v, .mp4, and .mov file formats