PSP Video Converting/Compressing

Okay World4ch, here's the deal:

I've been playing around with all the various features of my PSP and I've decided to try putting some of the videos I have onto my PSP's memory stick for... well, mostly just for kicks.
 
Anyways, I've tried a couple different programs (Namely PSP Video 9 and 3GP Converter) to see if I can squash the files down to a good size, but they've always seemed to either come out hardly smaller or LARGER than the original file.

The files I'm attempting to transcode are all in AVI format encoded with DivX or WMV format.

Anyways, here's my actual goal:
I want to fit a ~200MB video on a 32MB memory stick. Why? Because I can't quite afford a larger stick just yet. I am curious if people have achieved this sort of compression. If they have, I ask what program was used and under what settings.

Thank you in advance for any help that may be provided.

Hahahahahaha... Good luck. If you managed that compression, all you'd get is a little pixel-sized movie. Enjoy.

Yes you can get a 200mb video about 32mb relatively easilly, but you can't expect it to be same quality tho. I made a 233mb anime episode rougly 44mb with most of it being audio (the audio was actually higher vbr biterate than the video), using divx3,11 alpha for compression. The most important thing is you gotta use low frame rate (10 fps for example). The quality wasn't actually so bad considering size, the animation was not as smooth as the normal 23fps ep obviously enough , but the video size was respectable 600x400 and it was sharp enough.

Now the only thing I don't know is what codecs a PSP can eat. A lot depends on the codec you use.