.WMV to MP4 or Mkv conversion [I want to reduce the size!]

[foralltimerishi]

guys I have huge TV-recorded streams of about 7-10GB and in these streams adv. are also recorded. I want to reduce the stream size by trimming the recorded adv. plz help
and the resulting format must be MP4/MKV/TS with audio format AAC !
plz help guys
video codec conf.:
fps: 29
res.: 720x480
decode format: planar 4:2:0 YUV

[Baldrick]

Try first vidcoder with the high profile.