Reducing Video File Size?

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I've recorded 421GB of files using fraps, which records them as .avi files. Can anyone recommend a program to reduce the filesize without losing a lot of quality? I've been using the Sony Vegas Pro Trial to edit my videos, but I'm new to all this. When I used Sony Vegas' own rendering ability, it reduced the size of a video file from 3.5gb to 550mb, without any noticable difference in quality.

That takes a long time though, is there something else that'll reduce the file size, keep most of the quality, and be quicker than Sony Vegas Pro?
 
Will give it a go. :) Can anybody also tell me what the reason is, and if there's a way to sort it out, why when I speed up a video in Sony Vegas to x4, and then save the file, the file is 4 times larger than the original? I have an 8minute long video, I sped the video and audio up to x4, and rendered the video. The file size has gone from 3.95GB to 13.6Gb.
 
Somebody recommended ffmpeg to me. I'm too tired to even begin to understand how to use it, or to even read all of the links that are posted above. I'll try tomorrow and see how things go. :D
 
I've not used Vegas, does it let you save as different formats?

I'd imagine if you install Divx or something like that, then it will allow you to save in Divx format.

Handbrake is great for compressing files after editing, to MKV or MP4
 
I use Virtualdub to compress fraps, usually after editing a bit.

Speed depends on the settings you use, there's a ton of different codecs and quality levels you can choose.
 
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