Sorry, another question answered by googling the correct terms. Transcoder
ffmpeg is thing you want and the easiest way to install that is to install a program called pspvc which installs ffmpeg as a side. So that's done.
I'll post a howto sometime detailing all the steps if anyone is interested. I've started writing howtos for things like this based off all the info and howtos that I read. This helps me if I ever need to do it again plus I can look more closely at what all the steps are. I list all the sources at the bottom of course.