There exist lots of paid and free iPod video converters but if you are looking for a simple and fast drag-n-drop avi to iPod video converter, free utility iPodME would be the best solution, the open-source utility is very easy to use, you just drag-n-drop your avi files on the application, configure any customization options if required and click the convert button to start the .AVI to .MP4 video conversion.
![iPODMe Video Converter](http://www.megaleecher.net/uploads/iPodME.jpg)
iPodMe also supports addition of subtitles to the converted videos, you can use free and automated subtitle downloader OSCAR to download correct .srt files without any hassle.