Based on the link given in this answer on stackoverflow I will try to explain how to encode a video in an iPhone friendly format.
The steps below are carried out on a Mac, but the windows version of Handbrake should be similar.
- Open Handbrake.
- Go to
File -> Open Source and browse to your video.
- Choose
MP4 File as container.
- Input the settings shown below for the respective tabs:
Picture tab:
Keep aspect ratio - check
Width - 480 (set to 960 if encoding for the iPhone 4)
Anamorphic - None
Cropping - Automatic
Video tab:
Codec - H.264
Video quality - RF = 21
Constant framerate - 30
Audio tab:
Codec - AAC
Bitrate - 128
Sample rate - 44.1
Advanced tab:
Add the following text in the textbox labeled Current x264 Advanced Options String: if you're encoding for a pre iPhone 4 device:
cabac=0:ref=2:me=umh:bframes=0:weightp=0:subq=6:trellis=0:8x8dct=0:level=3
If it's an iPhone 4 or higher the text should be:
level=4.1
The Advanced tab should look like this (for the iPhone 3 encode):

Here's a MediaFire link to the converted video for iPhones before the 4:
http://www.mediafire.com/?tlyzcg1hyygq8zf
.mp4file. You have an.m4vfile in the link. – Bart Arondson Jan 23 at 21:22