How do I make my 700mb avi file into an mpg file that is 700mb?

How do I make my 700mb avi file into an mpg file that is 700mb?

I used tmpegenc and the file is a lot larger. What options should I chose to make the file size small enough to burn on CD-R so I can make a VCD using Nero?

 

Simple. You can't. A MPG size is 10 MB x length (in minutes). An AVI can be any size, depending on how lossy you want to be. Therefore: to meke a VCD froman AVI, you have to split the output's mpeg into 2 (as I wrote in http://forums.afterdawn.com/thread_view.cfm/110106 you didn't read, Step 1 c). Since a movie is approx. 2h (= 120'), half movie will be approx 60' = 600 MB).
Or, if you use TMPGenc 2.5 and you want to try to make a KVCD , read http://forums.afterdawn.com/thread_view.cfm/124272 and learn. More or less 120'-140' KVC fit on a 80' CD-R.