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Getting video off videocam

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I have a Digital Video Camcorder (Canon Elura 90). Currently I'm using Nero 7 Premium to capture the video from the camera. However the file size it creates is too big; a 60min file when captured with DV settings came to 11.2GB. That's way too much. Any software that could capture these videos & retain the quality to a good/very good state ?
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If you open Nero, click make your own DVD video, click make movie,


browse for content, which is the blue magnifying glass button, locate and add the file, click the blue + so it sits in the timeline, click export, give the file a name and then click export again, choose if you want to convert to US or leave

I would expect the 11GB AVI file to come out at 1 to 2GB in Mpeg format which will play on standalone players if you burn it to a DVDR discs

While it is in the timeline, you can edit it as well
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