A good video compression program that allows you to use DivX or Xvid compression is Auto Gordian Knot available at
http://www.autogk.me.uk/.
I use this after exporting video files from Premiere Elements and allows you to have decent quality video at smaller file sizes (can reduce them by about 60% and still keep quality) - and best of all it's free!
DivX is the commercial (read - you have to pay for it) version of the Xvid codec.