how to make 350mb Xvid?

Ok, Im back, and with more questions :ermm: .
The thing is that Im 'capping' the WorldCup Highlights in mpeg2, but this video format is quite big (300mb for 5minutes of video),
so I started converting to Divx, but to get a decent high quality file playable in my Home Theater, the encoded video
still is too big (I get a 150mg Divx from a 300mb mpeg).
So for the first time, I decided to try Xvid, and Damn I was impressed!,
I get almost perfect image for only 80mb (5 mins), but then I thought about it and I believe the file is still too big,
what I mean is that for example: all the Xvid TV episodes I dld are '350mb x 42mins' with exelent image, wich means that I should
be able to get a '40mb x 5mins' file. So I would like to know how to do it.

I did a search on the web, like '350mb tv rip guide' and stuff like that,
but so far nothing helpful.

*Im just using 'VirtualDub-MPEG2 1.6.15'.
Thanks in advance guys.

C'mon people!,
at least an idea or how you would doit better.

Ok, the size problem as been resolved, I used 'AutoGK' to get the avi the size I wanted and with very good quality.
But when I play the xvid on my Home Theater, hte video kind of jumps, like if it
wanted to skip like some xvid I've downloaded before.

Is it the MP3 audio?,
sould I try AC3?
Damn Im geting tired of tweaking it (the xvid settings).

These are my settings.
http://img56.imageshack.us/img56/8551/settings1hx.jpg

Can't understand why you would have problems with DivX, it's simply a case of setting the desired bit rates, and of course using 2-pass encoding. You will always get jerky playback if you use single pass.

I use Dr Divx (which is really just a front end) and set the parameters accordingly. I usually aim for 345MB output size (for 40-45min view time), simply because 13 episodes at that size will fit onto a DVD, compared to 12 at 350MB.

Oh, and you can save your settings so you don't need to keep tweaking them

This time Im not using Divx, it doesn't give me the desired quality and compression.
Im using Xvid encoding.