Does converting from dvd to mpeg4 reduce file size?

Ive searched over and over and cant find the answer to this.
I ripped the DVD Bruce Almighty onto my computer using DVD decrypter. I then converted it using Videora Ipod converter. The ripped file was something like 6.5 gigs. The converted file is only 660MBs. Is this normal ?
Also I have seen it happen opposite, where I downloaded a clip of a diamond store robbery and it started as a 9,791KB Windows Media Audio/Video file and after i converted it, it became a 40,990KB Mpeg-4 Movie file.
Any help or explanation is greatly apreciated
Oh and I watched bruce almight and it worked great, im definately not complaining that it took up less space, just curious of why and if the videora default settings are possibly converting to a smaller bit rate or something that is going to reduce quality when watching on ipod or itunes.

yes thats compleatly normal. You're looking at 3 differant video formats that all compress differantly and efficiantly. The ipod uses Mpeg4 and h.264 which is a more efficiant version of mpeg4. What you have to rememver is when converting from other formats, the video becomes that new format and losses its old compression bit rate (how much data is prossesed per second) and format and gets a new bit rate and new format. Like when I edit video, its done in a format called DV on which 10 minutes of video takes 2 gigs. But the finished product becomes a dvd whichi can fit 1 hour of comparable video in the same space. Let me explain more.
Mpeg2 is the video format of dvds. Mpeg2 is a pretty effiant codec but requires a pretty high but rate to be acceptable. Mpeg4 can do with less data and achieve around the same quality. Also you have to remember that vidora is resizing the video to a lower resolution making the video even smaller.
As for a video getting bigger, thats normal as well. As I said is that the new file will achieve a new bit rate. Mpeg or wmv may need to be reencoded at a higher mpeg 4 bit rate to keep around the same quality of the original video. If you encoded the video at the same bit rate as the old video, youll loose alot of quaity form being double compressed.
All this is hard to explain if you know nothing about video formats and how convertion works. Hope some of this makes sence

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