I have a Canon SD100IS digicam that I use to take quick video clips of family events, outings, kids activities, etc. Start/stop is used often so that I end up with tons of little AVI files on the camera's SD card. I noticed that the AVI files are very large, for instance a 30 second clip is about 100MB.

What is the recommended way to combine all these AVI files into a AVI file using a more efficient codec like H.264 or XVID? Maybe even put in markers or chapter points where each source file ends so that is easy to seek to the next segment. Elaborate authoring like menus, navigation, etc would be overkill but if it is easy enough to do using the same software that would be a bonus.

Any ideas appreciated. Thanks.