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Probably the easiest thing is to open it in Windows Movie Maker, Import the media and then drag it to the timeline at the bottom.
Go to publish, and select to a file on your computer. It then gives you compression options where you can tell it how big of a file you want to output.
Of course WMM will also let you do some basic editing things to it also, which you may like as well.
I think every XP/Vista install comes with WMM by default.
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