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Create them as Uncompressed AVI's (these will be very large) and try using Xing's MPEG Encoder to encode them. (www.xingtech.com)
You can slice them up as needed with a program like MyFlix. Search for it on download.com.
These programs should get you started along pretty well. You'll have to mess around with different settings, but after time you'll begin to understand the different settings and the effects they'll have on the quality.
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