Couldn´t refrain myself from looking into it a little bit more. Had success to some degree, the progress of which can be seen in the screenshot below.

The conversion works as propagated, the default media player,however, refuses to play the file. I am not sure if that is just my machine or a general bug. There is a somewhat curious bug report which can be found below. It is stated that the bug is resolved or never was a bug in the first place.
https://bugs.maemo.org/show_bug.cgi?id=6719

On another note, I did have success converting a quicktime mp4 movie to mpeg format.