I think 'pocketdivx' is easier to use than virtualdub, and if you take the time to set up your conversion properly, it does a more than adequate job. I've just done 'liar, liar', and 'dumb and dumber'(ok, jim carrey fan), and both come in at approx 230 meg. I used 318kbps video at 15fps, and 96kbps stereo sound at 44mh, tweaked the color and contrast, and used the sound resync option. All takes about 1 hour. Perfect reproduction and good to watch. Must try out 'Blade Runner' for optimum pic quality !