What codecs to use?
MSU codecs are lossless, that means decompressed video is identical to the original one. Lossless compression cannot be very strong, so the file size is so big. Also, MSU Lossless Video Codec is slow, it can’t play high resolution video in realtime. Its main purpose is maximum lossless compression for storing. For most tasks usually lossy video codecs are used. They compress much better by taking out some detail, degrading video quality. They differ by quality/compression ratio. I think the best lossy video codec today is x264. It is an open source implementation of H.264 video compression standard. But x264 itself provides only compression, you need to have a decompressor either, which can be found in ffdshow. If this is too complicated, I recommend you to use MPEG4 codecs: DivX and XviD. They are both implementations of MPEG4 standard, the first one is commercial and the second one is free and open source.