It is very easy to use. Get xvid and in the top menu where you see "File, Edit, etc.." you'll see an option called "Video". In Video scroll down to where it says "compression" and select that. After the compression menu pops up.. select xvid and on the left you will see an option called "configure"
after you are in the configure window.. you might want to look at this guide for compresssion..
http://www.animemusicvideos.org/guides/avtech/xvid.html
after you select the quality you want.. make sure you compress your audio. In Virtualdub go to the menu item called "audio" then select "full processing mode".. then you will get the option to compress your audio.. go back to the top menu and select "audio" then scroll down to where it says compression.. select LAME compression witch you can get in the AMVapp.. witch you can get here..
http://www.animemusicvideos.org/guides/ ... mvapp.html
and choose the bitrate you want.. then when all done go to "file" "save as avi" then just save it.
In VirtualDubMod to compress the audio go to the menu item called "Streams".. select "steam list".. in there right click the available stream.. select "full processing mode".. right click the available stream again.. then go to "compression" then choose lame then choose how many kbs you want it..
after that go to "save as..." then save it.. ok I don't know if I explained that well but hope that helps!
