Media Conversion

Hi, can anyone help please?

I'm using DVD Catalyst 4 to convert movie files for playback from the HDD connected to my Blade BM5000s.
Can anyone tell me what the best settings for conversion are. Generic DIVX maybe?

EDIT I've realised I've posted this in the wrong forum, could a mod move it please?

Ok so after I've converted the files (see previous post) is there an easy way to transfer them to the HDD attached the Blade box? Other than the obvious unplugging of the HDD and plugging into my pc to do it that way.
I believe I should be able to FTP them across but I have no idea where to start. Anyone know if its possible and ,if so, where I can find an 'idiots' guide?