Convert .api video file to .mp3/.mp4 file

Does anyone know of an utility on the web (free or less thatn $30) that I can use to convert a .api video file to a music file (mp3 or mp4 that will play on the iPod feature of the iPhone)? I found a few that do it but they make you pay for the full-blown version to do the whole file or to get the song without any "watermarks", ie voiceover of the company name in the song every few seconds.

Thanks.

Lisa