The one I have makes the files too big. Each AVI I convert only shrinks down to ~80 Mb. I want a better one. Anybody know a good one? The one they use here is INCREDIBLE, so, anybody know which one that one is?

o_0
Dude, the converter as you call it, is not the problem.
It's your encoding skills, or lack there of.
I'd recommend looking at some tutorials on the internet on how to do it properly, I believe I use an older, outdated version compared to the one they use here, but the encodes I produce are better.
Why?
Well, when you say you want a small file size, does that mean that you don't care about the quality?
Since lower file sizes always result in bad quality.

I wanted to read the faq on the one I got but it was in Chinese so I can only use the default settings.