Important!
Do not use any other version of this codec besides the one in ffdshow
there are multiple other versions that can screw up your video very badly!
If you have any other versions of this codec i reccomend uninstalling them because they are pretty much useless.
Im too lazy t rip a dvd now so im just gonna use
this music video made by SenshiMamaru
First go in virtualdub and open the video

go to compression and select the ffdshow video codec

When you see the list of codecs select the "MS MPEG V2" (Yeah i said it!)
Important!
For mode select "one pass- quality"
For quality select 99 or 100
Make sure you set Max I frame interval and minumum I frame Interval at 1
That will make every frame a key frame
Like show here

After you set it click okay then save your video with it.
these settings will make large files too but nothing like an uncompressed codec.
Here is a clip from the original xvid version of his video
http://download.yousendit.com/283491DD4E9A0815
And here is the clip encoded in MS-MPEG V2 (ffdswow version!)
http://download.yousendit.com/C137575E16D87789
You should be able to take that second clip and load it in your video editor without any problems.
A whole episode in this codec would probally be between 1 and 2 GB depending on the quality of the original file
Sometimes it could get larger