Only recently I began to see 300 MB movies with exceptionally good quality even better than the 700 mb XVID movies with a larger resolution.
So I came across the software responsible: MeGui.
It is a freeware software which can encode to most importantly two formats, mp4 and mkv. I downloaded an episode for prison break which I was not able to record. It was in avi format encoded by xvid. The quality was not that bad and the size was 350 MB. Now that I have started using MeGui, I encoded an episode directly from the DVD. I specified the size to 100 MB, made the output resolution to 900*480 and saved it as mp4.
I was so surprised to see the quality being so good for such a small size as compared to the original.
My main point in writing all this is for those highlight makers to start using it inorder for them to get smaller video sizes making it easier for them to upload and easier for others to download.
For Those Who Don't Know YetSoftware Requirements1. MeGui - Download (
http://sourceforge.net/projects/megui/)
Download and Instal.
2. Avisynth 2.5.8 - Download (
http://downloads.sourceforge.net/project/avisynth2/AviSynth%202.5/AviSynth%202.5.8/Avisynth_258.exe)
Download and Instal.
3. Nero Audio Codecs - Download (
http://www.megaupload.com/?d=RWKL54U8)
Download - There are three files. Copy and paste them in "C:\Program Files\megui" folder or whatever drive you're using.
4. Encoding Profiles - Download (
http://rapidshare.com/files/258935016/allprofiles.rar.html)
Download, extract and copy the folder itself to C:\Program Files\megui..
5. Combined Community Codec Pack - Download (
http://www.free-codecs.com/Combined_Community_Codec_Pack_download.htm)
Download and instal. This consists of all the necessary mkv codecs and splitters.
You're done dowloading. Don't worry about the sizes of these files. They are very small.
LaunchingOpen MeGui. If you're using "Windows Xp" and you don't usually update your system, then you won't be having "Microsoft Net Framework". So you will receive an error message and the program will not load. Therefore you need to download Microsoft Net Framework. Version .2 will do and it's only about 14 MB.
The program will launch and you'll be asked to update (if you're connected to the internet). Actually it's not updating you're doing, you're downloading the files necessary for the encoding process. So you MUST update.

You'll see something like this:

To input the video you want to encode depends on the format of the video. If your highlight clip is in .avi or .mp4 format you go: Tools-AVS Script Crator or press directly "Ctrl+R". For me I do all the editing in the original .vob lossless format to maintain the original quality. If your clip is .vob or .mpg/.mpeg press directly Ctrl+F2.
A window will pop-up and you'll input the video. When the video has been loaded you click on "Queue"
Go to main MeGui:

and choose "Queue" and at the bottom you press start.
A window will come up with a preview of your clip and:

Do whatever you like with the resolution and when you're done click on "save".
You'll go back to the original MeGui:

where you can change to the settings you want or you can leave it as it is for a start. Click on "Auto Encode" at the bottom right corner to see this:

Here you'll choose whatever format you want, video size, bitrate etc. For me I choose mp4 file format because it's more widely supported than mkv. As for the size, it depends on the the quality of your video clip. Here you can judge better. If you've recorded from a HD channel, then you quality must be very good so you can send you bitrate to down to 400-500 and observe the output. Thats why I usually start with a 20sec part of the highlight to see the output quickly rather than waiting for the whole lenght to finish. When you're done, click again on "Queue", go to "Queue" in the main window and select start and wait which is the most boring part.
If you have any problem. Just let me know.