Converters (Pay)
River Past Video Cleaner: Allows you to convert various files to WMV HD (VC-1) including, AVI, DivX, DV, MKV, OGM, and XVID
Microsoft Expressions Coder: The coder is capable of doing VC-1 for Silverlight and such, I'm told it can also output to a user friendly VC-1 format (WMV HD).
Free Converters
Windows Movie Maker: By far one of the easiest programs on the market, best of all, it's free! If you own Windows XP Service Pack 2 or Windows Vista the program should already be installed on your computer. If not then follow the link! (I'm pretty sure that's a official download, if someone at Microsoft disagrees feel free to contact me and I will take it down ASAP)
Windows Media Encoder: Another one from Microsoft, it's not the most up to date coder on the market but it gets the job done. The Encoder is limited to 720p.
SUPER: It's not the best software out there, but it gets the job done!