Compressing video files to fit on Sony 8GB dual layer disc

I’m trying to create a dvd for my itunes music videos (using Replay Video Capture) to play in vehicle since my iTouch will only play the audio playlists. I’m trying to compress my purchased itunes video files totaling 6.98GB which would fit on one Dual Layer/8GB disc. Unfortunaly when I exported/downloaded them to my laptop folder the total size changed to 13GB.
Is there a way to compress them back to original Itunes’ 6.98GB size w/out sacrificing quality…my display screen size I will be playing them on is only 7" so that will help in preserving quality?
Programs I have already purchased and use include Replay Media Suite + Replay converter, CloneDVD/AnyDVD, ConvertToDVD.

**Replay video capture copied videos as .MPEG-2 files. Now should I then convert them to something else (vehicle’s dvd player will play DivX files) Right now they are in the long proccess of converting to .avi(MPEG-4 800kbps. After this completes am I suppossed to convert them again into .VOB files to burn to the DL disc??? Totally clueless with all this and would love to find software that downloads, converts, compresses and burns with one click…know of any???

Thanks!!!

**Replay video capture copied videos as .MPEG-2 files. Now should I then convert them to something else ([B]vehicle’s dvd player will play DivX files[/B])

Seems pretty straight forward to me. You have MPEG-2 files that you have to convert to DivX, seeing as you said “vehicle’s dvd player will play DivX”.

Right now they are in the long proccess of converting to .avi(MPEG-4 800kbps. After this completes [B]am I suppossed to convert them again into .VOB files to burn to the DL disc???[/B]

Of course not.

Right now they are in the long proccess of converting to .avi(MPEG-4 800kbps.

What program are you using? By AVI do you mean Divx (Xvid may work also)? For viewing on a 7" screen you could probably use a smaller file than what 800kbps will produce.

I “recorded” the files using Replay Video Capture which automatically created the MPEG-2 file. Next I converted them to .avi(MPEG-4) using Replay Converter.

*Program gives me option of converting to:
AVI (MPEG-4) - 800kbps
MPEG-4 - 800kbps
WMA - 800kbps
ipod video (450kbps)

Obviously, I am a newbie at this and none of this makes much senseand therefore the above steps I’ve taken probably seem uneccessary and redundant but I am learning by trial and error as I go along. Also, the reason I am asking where or not to convert them to .vob files is that my CloneDVD2 program I also use to burn (and does not recognize .avi files) has an option of choosing to burn to a DL (DVD+9) disc whereas this Replay Converter will just automatically burn files after conversion to regular 4GB disc without the DVD+9 option.
Is there a better easier way of doing this?

Thanks

As noted above, no need to [I]convert[/I] them [I]again[/I] to VOBs…Just burn them with Imgburn as data discs(Build mode)…