No you're not
I've never used DVDFab...are you sure it will convert movies for iPod? I've used Videora & 3GP converters. You'll need to convert the file to mpeg4 or H264 before it'll go onto your iPod.
Have a look through this thread, there's info about video to iPod as well as music.
Transferring music to iPod & iTunes
If you use the forum search to look for video to iPod, you'll find other threads as well