Adding letterbox

Does anyone know of an editor that will add letterbox to avi and keep the avi size to about small(600MB - 1GB) from 485MB ?

 

Any encoder will do it.
A 1 gig mpeg will be such poor quality, you won't be able to watch it, unless you try something like KVCD templates in tmpgenc.
If you want avi as the final output, use virtualdub, with the resize filter, and a good compression codec such as DivX.

 

I was using virtualdub. Is there another good codec(s) which doesn't cost money ?

 

DivX 3.11 Alpha is free.
KS Mpeg-4 is free.

 

Thanks, I think I've sloved the problem now. Just made a DVD and using the DiVx solved the problem.