The below tutorial is the best way I have found to convert .avi videos to a format that can be played on the NPower Fusion Digital Media Player. The very few tutorials or help I have found suggests running the .avi video straight through Windows Media Encoder 9. I don't recommend this because, for me, WME9 freezes and pulls CPU like crazy and also results in errors. There is also a software called Pocket DVD Wizard that has an option for the NPower Fusion Media Player. I don't recommend buying this software for the soul purpose of converting videos for this player. Although Pocket DVD Wizard is a great software, you will be disappointed in the quality it produces for this player. In addition to the bad quality, the video size is too small. Oh yeah, and why pay for something when there is free software out there that can do a better job.
If you would like to follow along with this tutorial, I have included a Spongebob Squarepants episode that you can download. I will also provide the finished video if you would like to see what kind of results this tutorial gives before downloading the software required. A link to download the finished video will be at the end of Part 2 of this tutorial.
Step 1: Software to download and install. A video to follow along with this tutorial.
Prism Video Converter - You can download it from me
HERE or you can download it from their website
HERE . The version I have is the Free version for non commercial use.
Spongebob Squarepants- Rise and Shine download
HERE. Save this video somewhere you can find it easily.
After downloading all the required stuff, install Prism Video Converter. While installing, it will give you the choice to install other software. This is unnecessary because you will only need the video converter. Screen Capture for this software is below.
Click on the picture for a larger view
Step 2: By Default Prism Video Converter, I believe, saves the converted video to the My Documents folder. If you would like to save it to a differnt place you would do it in the output folder section.

Just make sure it is somewhere you can find it easily.
Step 3: The first thing we are going to do is make sure we have the correct settings.
1. Make sure the Output format is set to .wmv click on the picture below for a better view.

2. Beside the output format, click on the button Encoder Options

3. Choose the settings in the picture below for the window that pops up and then push ok.
Step 4: Add your video by clicking the green add sign in the top left corner. Select your video by navigating to the folder you saved it in.

Your video should now be listed. If the video is in the list you are now ready to convert. Click the convert button.

Convert time varies. It all depends on the length of the video. After conversion is complete you can close Prism Video Converter. Proceed to part 2.
PART 2