What's the best settings to Export movie for smaller file sizes?

Hi, I've been working on some helmet cam footage which was taken with Xvidmpeg4.avi and was advised to convert it to dvavi for editing in PrE, this created a huge file to work with, the original footage was 206mb and the finished edited dvavi file is now 1.56gb, what settings can I use to export the movie with a much smaller file size, but hopefully try to retain some quality, to upload to places like Vimeo? I thought I would try to export it in the same as the original footage Xvidmpeg4.avi thinking this might compress it again to something like the 206mb of the original and the original was good quality footage, but PrE just hangs up with a box stating 'Xvid Status (Not Responding)' and when I try to cancel that the whole thing crashes and closes? So when I go to File > Export > Movie, what would be the best settings in:
General > File Type ?
Video > Compressor
lots of options under compressor if I select the file type as Microsoft AVI, so I'm guessing something under that would compress it to a smaller file size but what, I could spend all night trying different settings so hoping for some advice?
Or, if I'm completely in the wrong place for the settings and should be doing something else please tell me?
Thanks, Gav

Thanks for the replies, but to me it's still confusing - simply because there are so many settings, if I go to Share/Personal Computer I'm then presented with a whole load of settings
NTSC Flash Video
MPEG
DVAVI
Windows Media
QuickTime
and under each of those is a lot more advanced settings?
I'm guessing I wouldn't use flash or quicktime, so which of the others would I use and what are the advanced settings to use as I can't find anything that is .wmv or .mov
What I've done with other videos that I've exported from PrE as dvavi is then to put it through Windows Movie Maker, Publish Movie, This Computer, then put the settings to Windows Media DVD Quality (PAL) (3.0 Mps) - this seemed to be the only setting that reduced the file size considerably but still had good quality, but it's still about twice the original file size?
This all seems long winded to me, open original file, convert original file, output another file, then output the file again in something else which then results in loss of quality and a larger file than the original? I'm ending up with lots of files, was hoping just to edit in Premiere then export/publish that edited clip and that would be it, then upload to the net.
Is it not possible to just edit my original footage and save it, just like you would with something like a word document, should I be using something else and not Premiere?
Thanks.

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