I've been tinkering with divx lately. Came into the problem of virtualdub not being able to open .wmv files.
I finally managed to get a divx copy. but i had to play the movie in winamp and record it with fraps. Essentially its a copy of a copy. lol. so the quality isn't what it would be if i had the original fraps recorded video.
it's like 1 meg smaller than the .wmv you posted, not much and it's a smaller actual size too. Not too impressed with the result. I bought fraps, so im going to play with it with some games and see what i can come up with.
I have doctor divx, which *does open and convert .wmv. but the quality is shitty as hell. it makes it all blocky. so im gonna stay far away from .wmv files, they seem to suck =p
Also, i have a audio codec i need to try out, i think it came get the audio compressed better. used mpeg3 codec with this.
http://www.peqserver.com/doom3_divx.zip