This quick video will show you how to compress a video file. To compress a video file you will need software called Virtual Dub. Open Virtual Dub and open a video file you want to compress. Click on Video Compression Choose the video codec named Xvid, and click on Configure. Select AS@L5 and Single Pass. Click on the target button, select 300kb. Go to Audio Compression. Select MPEG layer 320kb stereo sound. Save as an AVI. When it's finished the file will be on your desktop.