Click "Start," and then click "All Programs."

Click the "DVD Shrink" folder to expand its contents, and then click "DVD Shrink" to launch the program.

Click "Open Disc" at the top of the window if you are attempting to compress files from a DVD, or click "Open Files" if you want to compress a video file stored on your computer.

Click the box next to any unwanted audio or subtitle tracks such as foreign language options in the "Compression Settings" section of the window. Removing these options will reduce the overall size of your video file, allowing for a higher resolution for your video.

Click the drop down menu under "Video" and select your compression setting. The "Automatic" setting will optimize your video with the best settings for burning to a standard DVD disc. If you want more or less compression, click "Custom Ratio" and drag the slider to your desired level of compression.

Click "Backup" at the top of the window.

Click the "Browse" button to select a location on your computer for the compressed video file. If you are creating a video file to burn to a DVD for playback in a standard DVD player, check the box to the left of "Create VIDEO_TS and AUDIO_TS subfolders."

Click "OK" to begin compression of your video file.