Oh.. and you don't "compress" an AVI... that is already (presumably) compressed. You transcode to a lower bitrate and take the resultant loss of quality. And AVI is a horrible choice of format. What you really want is to go with something like MPEG4 (many .avi's floating out there are really mpeg4's... or bastard cousins... that are badly named so that WindowsMediaPlayer users will recognize them).