Help please converting videos?

New season passes I purchased in HD and cannot get them to transfer over to my iPod Touch. I found info about converting videos to create a version for my iPod Touch, but the option "Create iPod or iPhone Version" under the Advanced tab is grayed out and won't let me convert my video so I can get it transferred over. Could you tell me how I am to get my purchased videos from my library to my iPod Touch? Thank you for your expertise.