Then download and install this codec from here.
This is a very easy tutorial and trusted than using handbrake.
- Open vdub and open video which you want to compress.
- Click on video tab and select compression (ctrl + P) and select Xvid MPEG-4 Codec.
- Configure the bitrate and set it to 300kbps in codec configuration.
- Open audio tab and select full processing mode.
- After that click on compression and select MPEG Layer-3 codec.
- All done....now save as avi and video will get compressed.
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