Sorry, I usually use VirtualDub but only for temporary AVI part, because it's buggy and the audio is kept uncompressed (therefore you have a 2000 MB AVI, 1200 of it which are audio). I don't know good AVI compressors. The only way I do little AVI is to create a 'mute' AVI with VirtualDub, then add the sound (already compressed in MP2 form) with VitrualDubMod, keeping video__direct stream copy.
Virtualdubmod. Load up the file, select Video, compression, select Divx codec, then click File Save avi.
Sorry rebootjim, I don't agree. VirtualDub is not able to 'direct stream' a file from a MPEG. You need to make the trick to extract the MP2 from that mpeg with TMPGenc, first, then to add it to the video. Otherwise both VirtualDub, VirtualDubMod and Virtualdub-MPEG2 make an audio 10.1 MB x minutes long (therefore, an uncompresed WAV). Making Stream__Stream list__Demux or Stream__Stream list__Save WAV' VirtualDubMod or selecting 'Direct Stream Copy'/'Full processing' mode in VirtualDub / VirtualDub-MPEG2 gives you the same result... Try to do it, rebootjim. I use the last, stable, versions of all VirtualDub family. I think I'm right....
Virtualdub no, virtualdubmod yes. Load mpeg, choose compression (divx), save avi. Burn to disk, play on standalone that takes divx files. I do it every day.