How do I compress .avi files without losing quality?

I'm trying to record a Let's Play series for Youtube using FRAPS. I use Sony Vegas as my video editing program. The problem is that the uncompressed .avi files FRAPS makes are too large to load in Vegas. When I try to compress the files using something like Windows Movie Maker, it ruins the video quality... show more I'm trying to record a Let's Play series for Youtube using FRAPS. I use Sony Vegas as my video editing program. The problem is that the uncompressed .avi files FRAPS makes are too large to load in Vegas. When I try to compress the files using something like Windows Movie Maker, it ruins the video quality and/or distorts the colors. So, is there a free program or other method that I can use to compress the files without sacrificing my video quality?
2 answers 2