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compression.
first thing you want to find out though is what the specs of your clip is. use mediainfo (http://mediainfo.sourceforge.net) or gspot (http://www.headbands.com/gspot). in particular you'll want to know video codec, audio codec, and container type. some video codecs (for example h.264) already compress everything to the max, so you're not going to be able to shrink things a whole lot more (i'll attack that problem at the end).
if you happen to have an uncompressed video (unlikely), or you don't want to modify the video any (maybe you're a purist like me and you don't like modified data), I'd give an archiver a try. WinRAR (http://www.rarlabs.com) or 7-zip (http://www.7-zip.org). use best compression for winrar, or ultra compression for 7-zip (ultra is slightly better). Like I said if video data's in a super-compressed codec, it won't shrink it much, but try and see for yourself.
Second method is to recompress the video using a lossy codec. Depending on what video format your file is (AVI, MPEG, MP4, whatever), there's different tools for this. You'll want to pick a codec that achieves good compression (the MPEG-4 codecs like Xvid and DivX are good; H.264 is even better; VC-1, Windows Media Video 9's OK). Like I said you'll want to know the specs of your original file to know what tools to use. A note about compressibility: quality and file size are always a tradeoff. If you want a tiny file, you'll have to sacrifice image quality. If you want high quality, you'll have to sacrifice size. You'll have to pick a point where the two balance out best to your needs.
Lastly, even with the best compressors (assuming you wish to keep a decent amount of quality), there's only so much shrinking you can do to a file. If the target size isn't reached, you can try reducing the file's dimensions. For example make a 640x480 clip 320x240, (or even 160x120 if it really has to be small). In that situation, video editors (the ones you use for recompression), come in handy again. Usually they'll include the ability to resize, as well as recompress.
 

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try Auto Gordian Knot compression software - it uses the Xvid codec that the above poster has recommended, is easy to use and gives reasonably good quality at highly reduced file sizes. I use it and use the percentage method (you'll see what I mean if you download it from link in my signature) using 50-60% seems to work OK for most videos. It also allows you to reduce the pixel size of the video (again as explained above by Blah :wave:) If you really want small sizes (emails etc) this is the way to go - but be prepared for quality loss at smaller sizes.
 
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