Wow , I've never seen one that big before.
VirtualDub with it's inbuilt filters certainly can resize for you.
It'll be something like open the avi file, then Video & filters. Add "resize" & set your size parameters.
Then Video & Compression & select your codec - Divx or Xvid , configuring the output size you want.
And then save as ....
Hope that's useful, but you might need to tweak a couple of those steps if I've got it wrong.