well, number one; video editor are not good at Compression -- their Editors!
Once you've saved what you have, RAW or Huffy is fine, the file WILL be big.
Now is the time for SUPER -or- Avi2dvd encoding. This .vob file is tight and clean.
then use either Virtual Dub -or- AviSynth to complete the conversion from VOB2mp4
