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converting video

Red Squirrel

No Lifer
I have this 2GB AVI video, think its like cinipaq or some other format, basically hardly no compression, and huge. I want to convert it to divX and maybe 480*320 or whatever will be right proportions, just smaller. I tried adobe premiere, but it totally refuses to go by the size settings I set it. It does make it divx, but it keeps the same rez which I don't want, since it needs to be under 100MB (posting it on youtube). Anyone know of a program that will do this for me?
 
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