Hey Bernard, I did it this way.
I tried it with an episode of Family Guy. I used DVD Shrink to download an episode of Family Guy. It was like 450 MB just for that one episode. Then I used a program called AutoGK which is a divx conversion tool. I made the 22 minute long 450 episode from VOB into a 45MB AVI. It looks and runs great. I am trying to make it a little smaller, somewhere between 25 to 30. Ill let you know how it looks. Only problem with the program was it took the program an hour and 20 minutes.
When I tried to change a movie , it came up with an error about GOP. What ever that is.
Ill let you know if I can make the episode smaller, and if i end up making a Movie smaller too.
Oh ya, the AutoGK is free too! If anyone wants the link:
http://www.autogk.me.uk/
Thanks for your help so far
Eric