The term, grid computing, has become one of the latest buzz words in the IT industry Grid computing is an innovative approach that leverages existing IT infrastructure to optimize computer resources and manage data and computing workloads. The first objective intends to study the grid computing concepts, their types, their relationship with other computing technologies, the open source middleware available for its implementation etc. It also involves the analysis, design and implementation of a grid environment.The second objective intends to study the compute, storage and network intensive problem of DV to MPEG4 video conversion and to implement it on the grid environment designed in above step.Third objective intends to evaluate the performance of grid (designed in step 1) by executing the conversion process (as defined by step 2) with different parameters.