I downloaded MacBreak from iTunes podcasts, and it's encoded in 540p high-def, so you can't sync it with my iPod. I right-clicked on it and selected 'convert to iPod' and the status bar crawled across the top of iTunes for about an hour, while a little orange wave icon appeared in my source list entitled 'Converting Songs...'. After a hour or so of what looked like fairly high-intensity processor use, the file announced it had converted with a little chime, like when you successfully rip a track from a CD.
Only problem is, the high-def podcast is still in my iTunes window, but no converted file, and if I update the iPod, I still get the message saying it can't be sync'd because it's not in a compatable format. But I know my iBook sat there for an hour, thrashing away, at least appearing to convert the file to something else. What am I missing? Where has the output from the conversion activity gone?

EDIT:
Okay - you can wasteland this - I found the answer. The converted file was sitting in my iTunes directory in the relevant podcast folder. I still don't understand why it wasn't automatically added to my Podcasts screen within iTunes - inconsistent with the way music files are handled, but at least it was added when I double-clicked on it.
Very strange...
Only problem is, the high-def podcast is still in my iTunes window, but no converted file, and if I update the iPod, I still get the message saying it can't be sync'd because it's not in a compatable format. But I know my iBook sat there for an hour, thrashing away, at least appearing to convert the file to something else. What am I missing? Where has the output from the conversion activity gone?
EDIT:
Very strange...