Itunes uses a protected format of mpeg4 to prevent copying and distribution of video you purchace and download from thier website. I think next time I'll order the DVD. I recently purchaced season 1 and 2 of "Sliders" and found that it would only play in Itunes or the Quicktime player. Even with all my video tools the most I could do with Itunes was burn the files to a Backup Data DVD...again still limited to watch it only on the computer.
Since I prefer to watch movies on the TV I started looking for solutions.
Most of the websites referenced or are pushing an application called "Tunebite" and It didn't work for me for what ever reason. The resulting video didn't display properly and kept capturing other areas of the screen besides the video. Pulling the audio only off wouldn't even play.
I use a program called AutoScreenRecorderPro v 2.1 which gives me some flexibility as to what codec, framerate and cpu priority to make the recording with. I also used the Quicktime player instead of the Itunes player and told the recorder to record the window of the player so it effectively cuts out everything but the movie.
In AutoScreenRecorderPro I selected the Microsoft MPEG4 Video Codec V2, Image quality 80, and framerate 60 recording priority set to High. I had to play with this a bit. After it created the .AVI file I dropped it into DVD Movie Factory 4 and made a DVD that played great on the TV.
The Pro version supports recording audio but they also have a free version for testing the video recording capability at http://www.wisdom-soft.com
Anyone using this method should remember it is illegal to distibute or make available for distribution the resulting file in any form or fashion and would be subject to procecution under international copyright laws. Doing this for "Personal Use Only" is another matter. Personal Use comes under the same 'Fair Use" laws that allow you to insert a DVD movie you purchace in any DVD player of your choice.
I don't think I'll ever own a Video Pod to carry movies with me. But I already have a Laptop and a couple of DVD players in the house.