Bink is the best software.Its the same as used by ww2ol for all their films.Also many others. The programme is free and is called radtools. the web site is:
http://www.radgametools.com/default.htmYou are talking about avi compression software right?
DivX is also a well known and pretty good compression program
The best results ive had have all been with the bink player. It seems to hold quality of picture better when you compress again and again to acheive smaller file size.Very easy to use too, I picked it up as i went along and used the help a few times.really easy.Effects were better in bink too with it being an easy click on a box to change your films to grey scale for that black and white film look.Divx i found a pain to use for stuff like this.
if you want to see 2 films i made of AH try looking at my films:
http://combatarena.users.btopenworld.com/Films.htmlfor splicing of the film I found it much easier to edit the films in uncompressed format BEFORE i used a video compression to make them a reasonable size. However I was using over 10 gigs of my hardrive at one point! but it was fun and the results were good for my first try at this sort of thing.It was a lot of fun trying.I have made 10mb my limit for a film but even that is a bit big for most people.they can start in the hundreds of MB's before i compressed them over and over with Bink.
The programs i used for sound mixing and picture editing were all 30 day trial programs mostly. There are loads so try them out, find one you like.
i remember thes 2 were good:
Goldwave (
http://www.goldwave.com/)
AVIedit (
http://www.am-softhome.com/)