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Download Virtualdub and a cracked copy of the latest DivX codec  Then open up the large movie file in virtualdub, put both video and audio on 'full processing' in the menu. Then goto compression in the audio menu and change it to mp3, about 160kbps will be ok. Then navigate to the compression part of the video menu, select divx, then goto codec settings. Change the output bitrate to about 1200kbps and choose the resolution you want. I wouldn't knock the resolution down any further than you captured it at, if it was captured at 530X480, keep it that way. The combination of the divx codec and the mp3 audio compression should cut it down to about 1/20th the size of wot it is now.
Hope this helps 
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