Encore: editing .avi clips results in large file

Greetings!!!
So, I am using Encore CS5.1 in my attempt to edit some parts out of .avi clip. 
The source clip is is around 500MB. 
After I have set all the begin/end markers & got the desired output clip ready for rendering, I proceed with the
final rendition.  And then that is when things get funny.  The resulting clip (.avi) is over a gig! It should have been way less because I have actually cut stuff out.
And yes, I do retain the resolution of the source clip.
Why is this happening?  Please let me know if I am missing some settings.
Thank you.
-gam101

I can't discuss anything regarding copyright violation, not condoned. However, if you have a DVD that you made yourself, Premiere can edit that natively, no need to transcode. Open the DVD in your computer and go into the VIDEO_TS folder and there are .vob files inside. Copy the .vob files to your hard drive on the computer, then Import them into Premiere. There is no quality loss since you are not converting to another format (DVDs do not use .avi at all).
Do that, and do your cutting in Premiere and when done, go to File > Export > Media and in AME interface, choose "MPEG-2 DVD" as the format, and then an appropriate preset such as "NTSC Widescreen High Quality" or one that matches YOUR footage best. Under VIDEO tab, you'll want to adjust the data rate depending on program length. The formula 560/minutes=rate works well, though I like to round down a bit for safety and space that menus can consume.
So 560/120=4.66 and I would then encode at 4.5 and no worries (not to exceeed 8 on short movies). Import results to Encore to burn DVD. Another option from Premiere is to use Dynamic Link to go over to Encore, a more automated process. But no need to create an .avi intermediate, that just means time and quality lost, you want to export straight to MPEG-2 for DVD.
Jeff

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