Easy Way to convert a file to Divx or some other smaller file

[eLiTeGoodGuy]

I have a 440MB DV avi file from where I directly ripped a short clip from my camcorder... I converted it to MPEG 2 and got it down to 91MB... I need to make it smaller how would I go about doing that. I am trying to use XMpeg and took that 91MB file to 1.56GB so I am doing something wrong