If you want the file to be smaller then you could do a few things.
1) Get a program that will compress your audio into a Smaller file. Using a program called Ligos you are able to convert AVIs to MPEG-1, or MPEG-2 along with the audio going directly into the MPG (WAV) or you can compress it to MPA which will make it much smaller.
2) Encode in MPEG-1 format if quality isn't very important or if the source is not good to begin with.
3) Encode in MPEG-2 at a lower bitrate. Heres a small chart with basic lengths / rate for a 650mb CD
Time (Mins) ---------- Mbits / sec --------- Constant / Variable Rate
0 - 11 7 Constant
11-22 4 Variable
22-33 2 Variable
33 + 1> Variable
This is all assuming no audio so it might not be the best representation but I hardly ever have audio on anything not recorded on DVD.
Using a variable bitrate is probably going to be best if you want to have a good looking end result.
Anyway I believe that you converted the files fine normal VCD Videos are spanned across 2 - 4 disks depending on the quality. Therefore your end result should be fine. You can still try a few of the things I said to see if you can get the file smaller.
The dude is right about the player, I doubt you could get a Apex to play files which need a Codec. There are newer players available / soon to be available, that have the DIVX and a few other Codec's built into there fermware but there either VERY expensive, only in Japan or not available.
Hope that helped.
