I don't have one of these devices, but you can try this:
You can change "320" to "640" if you plan on connecting the iPod to an external device like a TV to view the video. Control encoding speed with "-preset" and quality with "-crf" as shown at the FFmpeg and x264 Encoding Guide, and of course you can change the title or omit that.
ffmpeg -i input -vf "scale=320:trunc(ow/a/2)*2,format=yuv420p" -codec:v libx264 -preset fast -profile:v baseline -level 13 -crf 28 -codec:a aac -b:a 128k -strict experimental -metadata title="1984 Bonk-the-Weasel Idaho State Tournament" output.mp4
This example probably uses more recent syntax for the so-called "ffmpeg" package in the repository, but you can easily use a ffmpeg build (just download, extract, and run [instructions]) or follow a step-by-step guide to compile ffmpeg.