How do I make the AVI file smaller on Virtual Dub or...?

I shortened a 40 something megabyte video, saved it as an AVI on Virtual Dub, and it made it into an over 4 gigabyte AVI. If someone could please help me to make it into a smaller file it would be greatly appreciated!
Or if you could suggest to me another free video editor that would be great to!

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Clarification Request
There are many settings and options in Virtual Dub.

I would have skipped any transcoding and used " direct stream copy mode " which is blazing fast. You also find that a 30 minute file when snipped to 15 minutes is almost 1/2 the size.


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Thank you!

But could you please tell me how to do that? Sorry... It's just that there are a lot of options...

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