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Programs to compress avi/movies

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I am new to macs and I am wondering I use right now Xilisoft Video Vonverter Ultimate 6 for converting movies but they also give you where you can change the file sizes and I was just wondering if anyone new if I put in a custom size would that just compess it for me or is there another program out there that will compress files for me some being around 4.5G and need to be smaller to fit on external hard drive.

Also if theres any good programs out there that are any type since I am new please let me no any type of programs.

Thanks
 
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Xilisoft = Chinese spam software.
You should specify what type of files you have, and what they need to end up as.
 
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Most files are going to be avi but there around 5G so I need to make it smaller so I would say avi is the format just need to be compressed.
 

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