pinnacle pctv rave captured file too large, help?

im using pinnacle pctv rave (its all i could afford) to capture some old video films i have which are unavailible now. i have managed to capture the first one, however the pctv card captures in avi and this avi file i have just created in nearly 4 gig in size. i didnt bank on having to burn one film on to somthing like ten cdr's, as i ahve no dvd rw. is there anything i can do to convert this file into something alot smaller so that it would fit onto three if not two cdr's? also if i have an avi file if i choose the super vcd option in nero, will it convert that avi file to mpeg2?

 

i should have pointed out that the cdr's that i am trying to create need to be able to be played in a normal standalone dvd player. i dont want to create vcds that just play on a computers cd drive.