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I use adobe media encoder, but I'm not sure if you can legally get it for free.

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Does anyone know of a good program/utility for compressing video files?

Handbrake

Freemake

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Handbrake

Freemake

This ^. Although I would probably go the Handbrake route @lyncblaze because it's pretty damn good. I use it for all my video transcoding needs. Tis an awesome program.

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Freemake has a nicer interface though, last I recall. Haven't used Handbrake in some time now.

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