What you are really asking is “How can I transcode videos for my touch?” First you will need to obtain the container/format specifications your touch device can play. Until you know this you cannot transcode one into the other (unknown).
An exellent, free, malware-free, non-bloatware application for this purpose available to windows (probably not windows 7 as per usual), osx, and nix is AviDemux. It does not need to be installed.
Run AviDemux, open your source video from your hard drive, then AFTER obtaining the container/format specifications your touch device can play make the appropriate settings ONCE and save that as a touch profile.
click save to begin the transcode process. This is simple enough even for ipod fanbois and itards.