I would try AutoGK or FairUse Wizard. AGK is free and FUW has a freeware version. I suspect both will work better than WinAVI.
But for a AVI type conversion, probably Divx or Xvid, use a bitrate calculator. Input the playing time of the file and the desired size and you will see what bitrate is needed to produce that size AVI file. But you need a converter that lets you set bitrate or does a better job of estimating it.
The screen resolution or the framerate doesn't have as much effect as the bitrate on size. And the lower the bitrate, the lower the quality. It's not that easy to get a 2 hour DVD to fit on a 700MB CD without a fair amount of effort and knowledge, at least at any reasonable quality.![]()