****NOTE: If you are getting audio and no video, at 4:04, change the "Format" from H.264 to MJEG and try again. Hopefully that will fix it.
****NOTE 2: If you are still having problems, for $10 you can buy DVD Catalyst to convert DVDs and videos. This video shows how it works:
In this video I show how to use MediaCoder to fix your "Loading Failed" videos so they are playable on the Innotab 2 and 2s. The videos will still play fine on the Innotab 1 for now so they don't need converted.
The new settings took a while to figure out and then took a while longer to find an application that would support them. MediaCoder was also used in the "Save YouTube Videos to Innotab 2 & 2s for Free" here:
2 EXTRA STEPS IN ADDITION TO THOSE IN THE VIDEO (annotations added):
1. Be sure to chose "AVI" in the "Container" tab. I missed that in the video but there is an annotation that says to choose it.
2. When you go to set the output file, in the drop down menu, set the "Save as type" to "Audio Video Interleave (avi)" AND type in the ".avi" at the end of your filename.