Spy, 650KBs = 5200Kbps = standard DVD quality which is very high. I recommend using TMPGEnc to reduce the bit rate. You should be able to get it down to SVCD size (approx 2376Kbps/300KBs) and still have pretty high quality. If the size is still too big I recommend you use VirtualDub-MPEG2 to convert it to a XVid avi. You can get good quality of that at about 1000Kbps/125KBs.
1KB = 8Kb.
