Need to re-record Blockbuster.com downloads into MP4 h.264

My family uses Sony PSP and iPod Touch for watching movies on the go. I also watch movies on my Apple iPhone. The problem is that I can't find a way to get the movies purchased on Blockbuster.com to be played on my PSP or iPod or iPhone. May be I'm just retarded, but I everything I have tried just failed.

So now I'm looking for a way to re-record downloads into h.264 MP4, because my Sony PSP as well as Apple iPod and iPhone seems to support them. What is the best way for me to re-record Blockbuster.com movies to watch them on my portable devices?