That seems rather long. The only thing I changed (as the FairUse file was only intended as an intermediary), was to make sure DivX was used as codec. Perhaps you could set the maximum length to less than 700MB; I suspect FU (talk about an abbreviation, eh!) will always use the maximum allotted length. Playing with the encoding speed might also help, but I don't know how much it will (visibly) affect the quality.