As reported by Lifehacker and Zune Thoughts, the ZuneIE Plugin (originally designed for the Zune) runs on Internet Explorer and allows you to download any YouTube or Google video and convert them on-the-fly to the .WMV format. All you have to do after installing it is to visit any YouTube / Google Video page and while the video is buffering, and click on the ZuneIt icon on the IE toolbar and the downloadvideo application will begin downloading the flv videos and convert them. The videos will be placed in the "Google" and "YouTube" folders in your "My Videos" folder.
All you have to do then is to copy the video into your Zune, Windows Mobile device or any media device that supports WMV.
The video quality is ok but I suspect it's being encoded at a higher bitrate, the video is choppy on my Excalibur while videos downloaded using Vixy is fast but then i'm using TCPMP to watch the Vixy videos which is a lot smoother.
That said, this is a much easier option. One Click download. Pretty cool. Try it out here: http://sourceforge.net/project/showfiles.php?group_id=185239&package_id=215651&release_id=473343