Ive captured a good lossless AVI file, now what!

[Darkstraw]

Ive captured a good lossless AVI file, it has lines(interlacing?), and i would like to compress it to mp4 or mp2
My main goal is to get it on youtube at 480x360 in good quality without the lines. The length of the videos probably wont exceed 7 minutes, max filesize i would want would be 200-300 megs (before uploaded to youtube.) although if i can upload it with less size than that and still have good quality then i would.
The 720x480 resoultion seems to not have line problems as much when encoded into mp4, but it looks crappy when im done and the filesize is above what i need.

This is the best ive gotten so far, but the filesize is too big http://www.youtube.com/watch?v=L5futsRHMDQ&fmt=18
its like 40 megs for 30 seconds

If anyone has any suggestions on what format/codecs i should use it would be greatly apprciated.
im using virtual dub and the encoder than came with my capture card (sucks). virtual dub only outputs to AVI files it seems.

Ive got a KWORLD X-Pert DVD Maker PCI Card VS-L883D PCI Interface athlon XP 2gig, 1 gig of ram, 7200 rpm hard drive with 50 gigs free. Trying to capture video from my wii.

(also someone told me if i hook up a dvd/vcr so that the video goes through that, it would get rid of the lines, anyone know if this will work?)

[Soopafresh]

I believe Youtube only allows file sizes up to 100MB for uploading. AVI is only an envelope in which you place your audio and video files - those files can be Xvid, DivX, h264 encoded. The audio can be MP3, AAC, WAV, etc.

Try feeding the AVI to AutoGK . I think it'll accept a raw AVI file and will allow you to specify output size, in your case, 99MB (to be on the safe side)

[Darkstraw]

they changed the upload limit to 1000 megs, and they also made it so it it will display files at 480x360.

[Darkstraw]

That program works great, but im having audio sync issues with virtual dub when i capture now, works fine at the start but after a bit it desync's. sigh.