Mpeg to AVI

Hope someone can help out a newbie…
I have got some big MPEG files and would like to compress them.
I read that when you convert into AVI or DIVX the file has a smaller size and still a good quality.

Can anyone advise me which program to use? What settings?



VCD (MPEG1) to DivX Conversion
SVCD (MPEG2) to DivX Conversion

More guides here and a little googling is a good means of self-education.