The Best Compression For Cartoons

[Chame1eon]

I have a bunch of cartoons that are already encoded with divx low motion, and i need to make them smaller to fit on cd. The best luck i have had so far is changing them to divx fast motion, but the picture looks pretty bad.
I heard there was a non lossy compression that i could use to simplify the encoding( for lack of a better understanding) of the flat colored areas then a lossy compression i could use to reduce the file size further. Anybody know what i'm talking about?
Well anyway if you don't does anyone know how i can make flat color pictures crisp clear and small (the boxes imo aren't too bad, but spotty fuzzy places in cartoons don't look good). Should i try to uncompress them first or something?

[muchspl2]

look into kvcd you can fit like 7 or 8 ep's on 1 disc, and animation looks great on kvcd

[ck-uk]

Mate you'll always loss abit if you're re-encoding/compressing abit further.But you could tri the filters in virtual dub under the video menu.