Victor1980 & prasanna,
The process I have outlined in the guide is to provide the best quality AMV I have been able to obtain. When I worked on this process I was not concerned with file size or drive usage so no compression is used in the pre-process which is why the end .avi is so large. So I did a comparison experiment with and without compression and here are my findings.
Examples 1
Original file: Size 512x384 23.98fps
Lenght 42:15 min\sec
File size 345MB
After VirtualDub all settings as above + set output frame rate to 16fps
Processed file: Size 160x120 16fps
Length 42:15 min\sec
File size 2.21GB
AMV Conversion 3.57:
Size 160x120 16fps
Length 42:16 min\sec
File size 127MB
Example 2
Original file: Size 512x384 23.98fps
Lenght 42:15 min\sec
File size 345MB
After VirtualDub all settings as above + set output frame rate to 16fps + Compression Xvid MPEG-4 Codec
Processed file: Size 160x120 16fps
Length 42:15 min\sec
File size 56.35MB
AMV Conversion 3.57:
Size 160x120 16fps
Length 42:16 min\sec
File size 142MB
Sample: Example 2 using compression is on the left
Enlarged 2X
As you can see using compression during the VirtualDub process reduces the output file from 2.21GB to 56.35MB however the end result produces a poorer quality AMV file but also to my suprise increases the file size by 15MB.