This is simple with practice or depending on your previous ebcodeing experience
Setting I use in Virtualdub are
VIDEO
Go to (Video) and select filters - click add and select resize and ok, now select precise bilinear from the third drop down box
Go to (video) and select frame rate - select by every second or third frame depending on size of video your encodeing, select ok
Go to (Video) and compression and select DivX 4.12 and ok ( if you dont have
the option of this, you need to install video codecs to your system I suggest Nimo Codec pack- which has all codecs)
SOUND
select audio and full processing mode
now go to audio and select convesion : select 44100hz High quality ticked and ok
now go to audio and select compression :select mpeg layer 3, you should now be offered many sound types, select 32kbits,11025hz press ok
select audio and volume and crank the volume up to 606 this means you can listen without headphones
USE Edit and the select selection start/end to cut the video to fit on smc
now just save the avi to destination
One last thing if you get the VBR audio warning is skewed, you must first select full processing mode in audio and direct stream copy in video and save avi, the avi will enlarge due to the sound being enlarged but will get rid of this warning and let you do the above and the sound wont go out of sinc. Only do this if you get the warning on opening video file
All da best, it gets easier with practise