I have Nero 10, but WMM is not installed on my computer. I have never tried to compress video before but thought video compression was something you had to download. Can you compress AVI video that much? I want the video saved as MPEG-2 or better yet, MPEG-4.
What's a container? AVI is what I'm trying to capture VHS videos as to minimize quality loss..
WMM is part of Windows so if you don't have it you can download it from MS. WMM can also do the capture as well.
AVI is not the compression format. It is just the container that holds the compressed video and audio data.
Try Handbrake. It will create MP4 files from AVIs. For VHS the quality of the source will not be that good so the choice of codec will not result in a big change in quality. This assumes you have a high bitrate.
Here are some link to read regarding containers and codecs.