I found a way to sync movies from iTunes directly to iPhone. Works like a charm. The synced videos will be available under iPod.app in Videos repository on iPhone marked as TV Shows. I was looking on the web for this trick and found nothing but I found a way:
First you need to get Roxio Titanium 9 Toast. http://www.roxio.com/enu/products/toast/titanium/share.html This version of toast has a feature of converting all your movies to all apple products such as Apple TV etc including iPhone and iPhone 3G. What this application does it converts movies to .m4v video file format extension and automatically adds them to your iTunes under the "TV Shows" which in comparison to other methods that were described on the web, can be synced to iPhone. Trying it now, works!
First you need to get Roxio Titanium 9 Toast. http://www.roxio.com/enu/products/toast/titanium/share.html This version of toast has a feature of converting all your movies to all apple products such as Apple TV etc including iPhone and iPhone 3G. What this application does it converts movies to .m4v video file format extension and automatically adds them to your iTunes under the "TV Shows" which in comparison to other methods that were described on the web, can be synced to iPhone. Trying it now, works!