I've been racking my brain for a week and a half and tried a combo of how-tos from here.

here is my problem. I have about 4mins of DV that roughly equal 650MB of data. I want to convert this to avi or divx so i can put it on the web for my family to download.

i can get great clarity but its around 20-30mb in size (too big) I can get it down to 6mb but poor quality.

i've tried premiere(too complex), videowave (drops frames), scenalyzer(very easy and great)
I like scenalyzer for capture and that goes great.

then i've tried virtual dub with huffy, divx5 codecs installed. i'm not getting the compression i need

i am using all defaults values so what am i doing wrong? where is a good how-to from start to finish?

ps... i'm shooting for 1-2mb files size with as good of a clarity as possible

thanks in advance!