Whats the best program to compress video files??

i have a avi file 800mb, i would like to compress this so i can put it on a cd and watch it on a dvd player, whats the best program free or otherwise .

thanks
Update: i have nero ultra edtion, i have compressed it to 210mb but when i burn this to a single cd using nero so i can view it on a dvd player, the file always gets bigger than the cd and fails to burn the cd, cant understand this
i dont mind losing quality of sound over picture quailty
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