A bit me, a lot Gizzmoe, gave you all the info you need to do so.
Here I made a quick HowTo in pictures ;-)
Load your video, than click on VIDEO and after FILTERS
After that choose ADD as shown below
After that you need to save it, Gizzmoe above gave you the setting to compress it nice nice! Thought I do not use Divx, I use Xvid.
Read the info, I know it;s hard a bit, but it is worth it, this program ROCKS!