I installed handbrake and did everything you suggested
(below) ... but the "Start" button is grayed out and I
can find no way to actually do the conversion.

See this: http://www.upquick.com/temp/handbrake.jpg

------------------
> ... Your easiest option is probably to get handbrake.
> It's usually used for ripping DVDs, but actually does
> a nice job of converting videos too, as long as the
> destination container is mp4 or mkv,

[snipped]
> Once you have handbrake installed and open, pick one
> of the presets from the right side. Choose the "universal"
> format under Devices.
> Click on the Video table and move the slider above "Constant
> Quality" till it reads RF:30. Then click on the Audio table,
> if there are more than one audio track showing, click on the
> lower once and then click the red X to get rid of them.
> Then select the remaining audio track, make sure the encoder
> is set to AAC and then set the bitrate to 96.
>
> click the icon of the diskette in the lower right corner and
> save this preset for later use.



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