For the record, I have been using WinFF and the settings in the post Arseno linked too and also Avidemux he was kind enough to share knowledge of. I haven’t done any 2 hour movies, but I have successfully converted approx. 100 half-hour TV shows and various downloaded .flv videos using these tools and then finalizing the conversion and transfer with SMC to external memory cards. They play perfectly fine on both my e280v2 and Fuze players.
I have linked to this thread myself many times in helping others having video difficulties. It may not be the only solution, but it is one that works. And both the suggested programs are free to download.
A big round of applause and heart-felt thanks should go out to both ArsenoLupino and themichael for sharing their knowledge, expertise and experience in these matters.