its just involving reencoding it with lower bitrates. this WILL reduce quality. you've been warned. take a look at the guide
XviD what? If for instance it was an XviD avi with VBR mp3 audio you could make it smaller simply by remuxing to mkv.
Thx for your help- I tried using Absolute Video Converter to convert the file to svcd and I got only audio with no figure. Please any hint on what I did wrong?