Compressing large video files - help!

I have about 114GB of video files on my hard drive, and with only 250GB of HD I was wondering how I can compress the files and not lose quality. Is there any software out there, preferably free, or is using the built-in compression option the best?

Hi gaz_reid;
It is now time for you to decide to either get rid of some files or get a more disk space with an external hard drive or larger internal drive.
Allan

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Thanks for checking in. The anwser to your questions are below.
Where is the material coming from?
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Please remember to click "Mark As Answer" if a post solves your problem or "Vote As Helpful" if it
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Here's my PC's components list you asked for:
VisionDAW 4U 8-Core Xeon Workstation
2 Intel QUAD-Core Xeon 5365-3.0GHz, 8MB, 1333MHz Processors
16GB 667MHz Fully Buffered Server Memory Modules (2x2GB)
Microsoft® Windows® Windows 7 Ultimate (x64)
WDC 250GB, Ultra ATA100, 7200 rpm, 8MG Buffer Main OS HD
2 WWDC 750GB, SATA II, 7200 RPM, 16MB Buffer HD (Raid 0)
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MOTU 24 I/O (main) / MOTU 2408mk3 (slave)
Plexor PX-800A 18X Dbl. Layer DVD+/-RW Optical Drive
Buffalo BuRay Drive (External) BR-816SU2
Front Panel USB Acess
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Thermaltake Toughpower 850W Power Supply
3xUAD1 Universal Audio Cards
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CUDA Parallel Processor Cores / 64
Maximum Display Resolution Digital @60Hz = 2560x1600
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PCI-Express, DUAL-Link DVI 1
Digital Outputs 3 (2 out of 3 active at a time)
Dual 25.5" Samsung 2693HM LCD HD Monitors

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Compressing large video files - help!

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