We've been using Vuze and it's former brand Azureus since we fist started bit torrenting Linux ISO's and other totally legal stuff. While a bit bloated, it has always been the most feature packed, cross platform Bittorrent client available. When they changed their brand to VUZE, they added a HD video distribution network. Now, in version 4.2, they've added client side video transcoding to all of your favorite devices. Along with iPods, iPhones and AppleTV's Vuze now supports Playstation and XBox.
It is a reatively easy process to set up but slow unless you have a some serious MP4 horsepower. It is all automated so you won't have to be there when your totally legal stuff is moved to AppleTV/iPod/iPhone compatible formats
