Compressing VOB files?

Does anyone have suggestions on the best way to compress VOB files? I'm making a video from clips I've made using DVD Shrink and DVDFab, but the files are just too large to work with in any functional capacity. I've heard HandBrake is a good way to go, as well as SUPER and AutoGordianKnot... Do you have a favorite?

I'm working on a PC and using Pinnacle to make the actual vid (it handles the VOB files well but does not compress them, though the vid it turns out is AVI. I am concerned because I did a test run vid made up of exactly two clips and a ten second mp3, and the file ended up at 48.3 MB).

Thank you so much!

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