Here's a low cost yet full featured video converter that does it's job well and adds some unexpected features.

Fast, high quality video conversion to or from most any format (including AVI (DivX, XviD, MPEG-4), MPEG-1 and 2, VOB, VRO, DAT (video DVD, PAL, and NTSC), WMV, RM (Real Media), MP4 (including Sony PSP format and Apple iPod), 3GPP, 3GP2, SWF, h.264, MOV QuickTime) can be performed with a few mouse clicks.

The "learning curve" is near zero and there are more than enough output options for most users.

In addition to the many conversion choices, AVS can also extract audio and images, capture video from different sources, transfer video files to mobile phones and protable video players (including Sony PSP), rip DVD or write your converted videos to DVD file format or burn a DVD with it's integrated burning engine! Those who need basic editing capabilities will appreciate the integrated video editor which includes an assortment (more than 50) of special effects, image and audio adjustment settings.

All things considered, I don't think you'll find anything better than AVS Video Converter in or near the $30 price range!