can our phone do h264 high profile?

Android natively supports the H.264 video standard, so it would be safe to assume that the Optimus S does as well.
 
I never worry about the levels or profiles when i convert for my phone. I usually just use Handbrake and set the resolution to the phones. The default settings for ipods,iphones, and the general settings is h264 (x264 encoder) and always worked so long as the res isn't bigger. I just watch videos in the gallery, so i dunno if other apps can watch higher res stuff without converting it.