took some footage off my camcorder 7mins in total, gave me a file size of 1.46 GB !

its a .avi file, now how to i make it smaller say under 700mbs, so i can put it on a cdr and play it in any dvd player? if it wont play in all dvd players, what file extension do i name it if i burn it to a dvdr? would still like it smaller tho?