These seem to be pretty common questions, so I think I'll make a guide for re-encoding for specific devices the manual way (sans 'all in one media converter crapware/bloatware/adware)
Over the years I've seen them all, they either do a terrible job, or a good job but massive filesize
I'll start with PS3, PSP, PSV and DVD, since I have all these and have a decent amount of experience with each.
If anyone else has a device they use frequently for watching anime, list it and I'll cover it if I can.
I'd start tonight, but maybe not. I might be pressed for time after I mow my beard.
DDE, have you tried yet? I was pretty vague in my explanation.