Help in making MPEG-2 files smaller with encoding

[screwed]

Hello, I need some help in this matter.

I have a JVC Everio G video camera. The files it creates are called .mod files which are unreadable to the PC. But an easy program I got converts them to MPEG-2 format.
But the files turn out rather large. 'My plan' is to somehow make them smaller, and as far as I can figure out (correct me if Im wrong), making them into DivX/XviD is the easiest and best solution.

But some programs like VirtualDub cant read the MPEG-2 files. So Im having trouble converting them. And this is where I need some help, not sure what I need to do. Or what program to use.

So please help, I followed some guides here. But none seem to suit my case. I may be wrong.
But a little start help would be very nice, thank you.

[manono]

Hi-

You can use AutoGK to make them smaller, using either the XviD or DivX codecs. Just open the MPEG, choose a final file size and let it go to work. You don't really need a guide, but there are several on this site, as well as an included tutorial:

http://www.autogk.me.uk/modules.php?name=TutorialEN

[guns1inger]

Virtualdubmod and virtualdubmpeg-2 will open them, if you need access to virtualdub filters.

[screwed]

thank you both, experimenting with the programs now. so far they work great.

so thank you.

[Alex DeLarge]

You could encode the mpeg-2 files to variable bitrate mpeg-2, that way you can still play them on a DVD player and achieve almost the same small file sizes as DivX.