DV Capture File Size

[dansleethmovieman]

I am in need of a little advice. I Need to capture a tapes worth of footage from my JVC GR-DVL157 Camcorder, the problem is, when ever I start capturing, the file sizes are stupid. 1 minute 16 seconds ended up 270MB and obviously if I am going to be capturing 60 minutes or more, I will be needing 16200MB of hard drive space... I have used XP Moviemaker, which is crap quality and so tried using Premiere 6.5. Premiere is pretty good quality, but makes the large file sizes. I have a fairly decent machine:
1700 P4
512 RAM
28GB of HDD space remaining
Dazzle Firewire card etc
I don't seem to be doing something right. I eventually want to put it as VCD, but for the time being I just want it as an AVI file (or DivX etc). I use the DivX 502 codec in Premiere, with the 2nd pass - first pass option, 1500kbps with the slowest/best quality setting. However it does not seem to make a difference what codec I select, they all look the same and have very similar file sizes. When I encode using DivX 502 codec, should it open in WMedia Player, because it does and I thought if it was encoded correctly, it would only open in the Playa?
Any help i would be gr8ful for!!

[The village idiot]

DV is about 13GB per hour.