I need to know how to take a DVD and compress it, or convert it to like an avi file.

This is NOT for any music or concerts....but something that I am doing for work. I was asked to take these vhs tapes, burn them onto a dvd and then using a program like Pinnacle Studio, compress it down to an avi file or mpeg file that is fairly small.

I need to take 28 minutes of video and make it less than about 600mb.

Any help would be appreciated.