When coverting video....it cuts it short

okay i have downloaded multiple WoW fraps made movies. all of which when i download are nice decently small files for its size.

Question 1. how can i convert the uncompressed fraps video into a smaller file size. like when i do it its rather big for the length of time it is.

Question 2. DivxtoDvd wont support most of my downloaded videos to convert to dvd-movie files so i use winAVI for those. on all the screen setting (4:3, 16:9, and Auto) it cuts the video or stretches it so that all is not visible. but it is visible when i watch it on the computer (non-converted file).

if needed ill post link comparing the 2 before and after conversion.
i just need to know a site that i can post the pictures on