http://moviesmobile.net/
Go there click on hollywood, and browse the movies, download the movies via links to the mirror websites, each movie is only about 160MB. There will usually be 2 avi files to the movie so downoad AVI joiner:
http://www.brizsoft.com/avijoin/avijoin.zip
Use the software to join the files together, then run them through SUPER converter (if you dont know how view this topic)
then just put them on your phone as per usual
Let us know of any other sites for downloading small file movies that you know of.
Thanks!