it may not be possible but i wanna give it a shot, i wanna compact some of movie files to under 700mb in order to put them on one cd-r disc, then, im gonna extract the sound to make a vcd then encode it.......has anyone ever tried this...what program can i use to shrink the files...someone help me please............

HEre is a really good page to start but you don't say what kind of media you are planning to start from:
_http://www.dvdrhelp.com/forum/index.php

I have just been doing such a thing, I started with an mpeg recorded with WINDVR from TV. Then used TMPGenc to edit out the commercials. Then I discovered that the file was too big for one CD so I used
WinMPG video convert 2.5 to convert to AVI and then used TMPGenc to re-encode the file with a modified video and audio bitrate. (adjusting the rate was trial and error) but I ended up making it 1050kb/sec video and 64kb/sec sound. Finally I wrote the file with NERO with Standard checking disabled. Well it works on my cheap DVD player so the kids dont care , and it stilll looks better than my clapped out VHS player.
Hope it all works out for you.