Is there a program that can shrink a big video to fit on one cd like dvd shrink does for dvd.
You can try AutoGK. Converting a DVD into an avi, with XviD codec for example, you can store on a CD an entire movie with reasonable quality.
handbrake said it can not install on .net framework less than 2.0. What is this and how can I change this.
got the net framework. Now how do I use handbrake to get a avi on a single cd
You should be able to install Handbrake now, which you can use to shrink the DVD down to an .avi.
You may need a separate program to burn the finished .avi file onto CD.
I don’t know about handrake but I’d try as geno suggested, AutoGk or FairUse wizard… IMO…happy converting! 
How do I use fairuse to get a avi file on a single cd
Did you install FairUse? if so then for DVD to Xvid or DivX avi, in options set size to 700MB…
What I am trying to do is to put an avi on one cd VCD . A program that could shrink the avi so that it would fit one cd or one VCD.
try Super…maybe OP should have specifically stated their objective…