Converter to AVI?

Thanks guys, reason i want to convert to avi is size mainly. I just ripped my bought copy of Avatar using DVD Decrypter and then converted it to mp4 with Handbrake. Now when i take the mp4 into Free DVDSoft video converter to convert to HTC HD2 format for my fone the file is 2.9gig and wont load. When ever i have purchased a downloaded movie it has come in an .avi file and is around 700mb so using DVDSoft converts it about the same size for my HTC as an mp4 and all those movies play fine. Its the size of the original handbrake mp4 that is giving me problems. So i thought if i could convert it to an avi it would reduce its size ?
This all sounds long winded now lol should i just find a program to convert the DVD Decrypter .vob file straight to avi ?

Am lost myself now lol thanks for any input here ;)
 

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You can reduce the size with mp4 or mkv, too. Click on the video tab, you will notice "Quality". Click on "target size", and put the size that you want .

But a small output size takes long time to be compressed, and the output quality may be bit compromised .
 

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Top Bloke Arc ;) thanks for that, i will test it out. Many thanks.
 

My Computer

Computer Manufacturer/Model Number
Custom Build
OS
Windows 7 Home Premium 64bit
CPU
Intel i7 950 4.01GHz OC
Motherboard
Gigabyte X58 USB -3
Memory
24gig DDR3 Vengeance (16gig seen due to OS)
Graphics Card(s)
ATI Radeon XFX HD 6870 DDR5 1gig
Sound Card
Realtek HD
Monitor(s) Displays
Hanns-G 27.5" HDMI
Screen Resolution
1920x1200
Hard Drives
2x1TB Samsung F3 HDD's
PSU
Corsair HX 850
Case
Antec 300
Cooling
Corsair H80 wc, 4 case fans
Keyboard
PS2 Microsoft
Mouse
USB wireless microsoft multifunction
Internet Speed
6mbps
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