I use Windows movie maker all the time. 200 MB can easily be shrunk down to 15 MB or less. All of [link=http://www.designerimages.net/pages/Shannen/shannen_rossmiller_video_archive.htm]these videos[/link] were captured with an ATI all in wonder and compressed with Windows movie maker (that's my wife, by the way). No choppy, no audio gremlins, and they are 1/10th to 1/20th the size of the originals. Remember the video capture rule, 'GIGO' garbage in, garbage out. Start with a high quality original, and the compressed version will be high quality too.

I have been capturing video for the bettter part of 8 years, and can offer more advice if need be.