Reduce size of video and music files

Although some movie files can be up to 700 MB, the size of video and music files can be greatly reduced by reformatting them using Windows Media Encoder (microsoft.com/windows/windowsmedia/forpros/encoder/default.mspx), a free desktop PC application from Microsoft. (You can also use Microsoft Movie Maker to reformat video files—see “How to make Video iPod owners envious” in the Mastering section.)
Media Encoder lets you reduce the video’s display size to fit the touch screen (Pocket PC) or non-touch screen smartphone screen resolution. In addition, it saves video in WMV format, which can be played on Windows Media Player. These steps can reduce a 700 MB movie file to about 175 MB, allowing you to save four times as many movies on your storage card.
You can use Media Encoder to adjust the sound quality of an MP3 music file so that it is more suitable to the reduced capabilities of the earphones you use with your Windows Mobile device. In addition, Media Encoder saves music files in WMA format, which can also be played on Windows Media Player. These two things can reduce the size of an MP3 file by as much as two-thirds.
For example, a 4 GB card could store up to 20 WMA-formatted movies and upwards of 2,000 WMA-formatted songs.
Based on a post by Jorcutt118, a PocketPCmag.com forum member
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