if you use virtualdub you have to have the uncompress file already and then re-encode it, if you want to seriously compress on the go and quality is not that big an issue (in fact you can control the quality you want) I use windows media encoder (free). It sends the sucker directly to the compression I choose, so for example I can record shows burn them onto rw's and bring them to work and watch them there. The files are as big or small as you want them to be. If you want to do professional movies then this is not what I would recommend but if you want to use it like a vcr and watch the shows once then this is great. I experimented with the quality and I can put 5 hours of 640X480 with very decent quality on cd. I can even tell WME to cut files at 100 or 600 megs each or whatever size to make sure I can fit them on a cd.