Ok so I started with .AVI files. I could not import these to itunes. I then used vuze and converted them to iphone format. The files were now .MP4 and I could see them in itunes. But I could still not drag them to iphone. I then went to Advanced>Create iPhone or Ipod version. This then converted the files to .M4V format. I still cant drag them to my iPhone! This is very frustrating and I cant find answers on any forums. Help would be much appreciated.