Download 3ivx. It has the best compression-size ratio. It's free. You can download the latest version here:
http://www.3ivx.com/.
For an hour of video and with a not so aggresive compression you can produce a 600MB or even lower file that then you can burn as a video CD. With a little bit more compression you can get even lower than that. Number wise not personality wise

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For the easiest and fastest "editing" (it's not editing and it's not precise but anyway) buy quicktime pro. It only costs £25 pounds or 30 euros approximately. More info on apples website.
I guess you want to get rid of commercials and stuff like that. You can do that with quicktime quite easily. I always find my self using quicktime for quick fixes. There's no need to bother with heavy duty programs and it's very fast to do.
You will find out that 3ivx produces sometimes a little bit washed out images so if you get the quicktime pro or any other application turn contrast up a little bit. Although strangely enough this increases file size... I don't know why. But not a lot. Only a few megabytes.
Hope this helps.
Oh by the way. You posted on the wrong forum...