What capture setting to use?

[IDN]

I would like to turn my VHS tapes to VCD. I'm using my TV card to capture the video via coax. I tried VCD and it recorded some video (63 minutes) at 629MB. I would like to fit videos up to 2 hours. What setting should I use? I have these:

MPEG-1 Normal/Good/Optimal Quality
MPEG-2 Normal/Good/Optimal Quality
VCD/SVCD/DVD
Windows Media Video
Uncompressed AVI
Direct Burn VCD/SVCD/DVD

The codecs are:

MPEG-1 Codec
MPEG-2 Codec
Windows Media Video Compression
DV Video Encoder
Indeo video 5.10 Compression filter
Indeo video 5.11 Compression filter
MJPEG Compressor
Cinepak Codec
DivX 5.0.5 Codec
Intel 4:2:0 Video V2.50
Intel Indeo Video R3.2
Intel Ideo Video 4.5
Ligos Indeo Video 5.11
Intel IYUV Codec
MS MPEG-4 Video Codec V1
MS MPEG-4 Video Codec V2
MS RLE
MS Video 1

[Icheb]

With VCD the best you can get is about 10 mb per minute. You need AVIs to get a better compression and they also have a much better quality.

[Guest]

If you go into avi compresstion I recomend XviD codec, I'm getting very good results with it encoding my anime off DVD and VHS. I'm not a big fan of VCD, I would rather go with SVCD and use a few more cd's and get better encodes, or if you have a dvd burner just use that and copy them right over (with some trickery).

Getting good encodes is hard sometimes, especially when the source is bad, I recomend you stop by Doom9 and do some reading. Learn how to apply filters and do it in the correct order, once you can do that well you can drop frame rates and bitrates and compress you video more with better results. On top of all this make sure you are compressing your audio correctly and enough.