Give Bink a try :wink: Anyone who knows me, knows how much I plug Bink format (Hi Dan LOL!).
Bink format provides for the best compression maintaining the best quality over any other comparable utility IMHO... all without the need of installing additional video CODECs to play them back -

Also, you can easily create a standalone self-playing bink format movie, and the embeded runtime EXE is quite small.
Anyhow, check out Bink at
http://www.radgametools.com/bnkdown.htm (download the "The RAD Video Tools"), totally free for non-commercial use -
P.S. Bink format is used quite extensively for in-game videos and cutscenes for about 90% of all PC games in existance. Bink is the succesor of the older "Smacker" format, which in it's day was used in the same manner... almost all DOS PC games used that format for their in-game movies -
P.P.S. Any of the movies linked on my ZipZaps Stuff and GeneRally Stuff web pages were all Binked/created/compressed using the Rad Video Tools ->
http://www.cmoo.com/~snor/weeds/zapstuff.htm ,
http://home.earthlink.net/~richnagel/grstuff.htm .