I like HandBrake as well, but since the XviD encodes it makes don't play on my DivX standalone, despite my best efforts (muxing issue I think) I use dvd::rip. Pretty much the same features, but HandBrake uses libxvidcore or libavcodec as the encoder while dvd::rip is a frontend for transcode.
Both are great examples of OSS which are quite competitive with commercial offerings, and either will do you well so long as you keep the pixel count sane for the Nokia. (~400x240 (depending on source aspect ration) is what I see mentioned here.)