Compressing AVI files is one of the way to reduce the file size for maintaining the information intact.After compressing a huge-large .avi file you will have a small sized file (Ex: Video file) which can be burned on a CD, DVD or uploaded on Youtube for sharing with Youtube community.Already we have free softwares to reduce AVI file size and tweak, edit the video files in .avi format, another way to compress avi video is by using default Windows Movie Maker if you are on a Windows platform.
Here are some of the ways discussed to reduce and compress the avi video file size using freeware softwares as well as Windows Movie Maker.
AVI File Compress on Windows [Windows Movie Maker]
This is one of the easiest way to compress .avi file format by making use of Windows Movie Maker which is pre installed on Windows operating system such as Windows Vista and Windows XP.
Choose the avi video you want to compress and Import them to WIndows Movie Maker, save the destination of the new movie file (Avi File) which you are about to compress and finish the easy setup process.For more information on Windows AVI Movie Compressing check out the Youtube video tutorial..
Compress AVI Files on Mac OSX
Currently For Mac OSX we have a nice little application called as Zwei-Stein which is free avi compress software for personal use and has a professional video editing feature along with easy to use interface & good compression ability! You can download Zwei Stein from here!
If you are searching for a more general methods then make use of DIVX (divx encoder) which is another way to effectively compress huge Avi files with a few steps!

Nice trick Dude. Well Thank you very much, Compressing Avi files was a big problem.