Hello,
On a positive note and after a week of trail and error I found the correct way to set the cron job for those of you using Dreamhost.com web hosting. Now I'm using the VPS and not shared hosting so I'm not sure it will work for a share.
/usr/local/php5/bin/php -q /home/YOURNAME/YOURWEBSITE.com/periodic/cron.php
It does convert videos now.
