Is this possible and if so, HOW?
Possible, easy, and cheap. Do some reading at www.videohelp.com . There is software, guides, tutorials, and reviews. After reading for a short time there, you should be able to do just about anything you want.
You can use xilisoft video converter, and find the guide here
I like WinAVI Video Converter for most quick conversions.Almost always does a great job and it's sooo damn fast.http://www.winavi.com/
I prefer quality, that's why I always use the path >virtualDub/nandub>TmpgEnc>TmpGenCDVDAuthor.
The method I use requires VirtualDub, BeSweet, AviSynth and the HC encoder.