Avi compression tools

Hi guys,

I have pinnacle tv turner card(110i).
I have capture video in avi format,the size of the video is very large & i want to compress this video,

Guys plz tell me a good tool for compressing this video in divx format or other that can be viewed in a dvd player.
 
You could also record and compress on the fly using virtualdub i.e insted of recording in avi then convreting, you can directly record in divx, xvid or any other format.
 
I found VirtualDub a bit tough to use.. I'd recommend Ashampoo Movie Shrink and Burn 2... its just great..
 
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