Virtual Dub! It's the most popular program for the task, mainly because it's so easy and it's freeware. Load the file, then choose type oif action for video and audio seperatelly (leave alone or compress) and then choose the compressor, save and let the program do the work. If you have any problems don't hesitate to ask. Here is the download link:
http://prdownloads.sourceforge.net/v...6.zip?download