I think compressing a video is the same as converting the file format like from .avi to .wmv. .wmv Usually has the most compression (Small file size, worst quality) and avi has the least compression(Big file size, best quality). After you import your vid to moviemaker, add it to the timeline and select save to my comp, then choose a place to save and then you will see movie settings. You can use the Best quality for playback on my comp which save the file as a .wmv format or you can select Show more choices for other options to save the file as in different sizes.
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