MPEG-1 to Divx problem please help!

[Goteraper]

I have a vcd rip of Blackhawk Down and I want to compress it to about half the size (it's on two files). I have been using virtual dub, but the file just comes out bigger than the original! Please show me how to do it (use idiot terms, I'm new to this stuff). Thanks

[KingJohn]

1, Select video > full processing mode
2, select Video> Compression > DivX MPEG-4 low motion
3, click the configure button, change the bitrate to 500 (Lower the number the smaller the size, but worse quality)

4, select audio > full processing mode
5, select audio > compression
6, select DivX audio, or Mp3 > 44.1Khz at around 64kbs (Kbs, low is small size but worse quality)

7, save as, save out the AVI

Those are basic settings, you need to experiment, If the source is good quality you can reduce bitrates lower, try a few.