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you're gonna have to learn all about compression. but first here is a quick lesson: Frame Rates: The Frame Rate of a movie is measured by the number of frames per second that a movie plays back.

Like a flip book when flipping the animation or "speed" is how often a "page" is passed in 1 second.

NTSC is 29.9 frames a sec.PAL at 25. That is broadcast standard. Since you aren't making this for the "air waves" you can lower your frame rate to 15 frames a sec which will then drop the amount of megabytes size.

for larger movies a program called sorenson squeeze will help you compress that video without losing quality. good luck!

edit: to answer your question Render at uncompressed AVI and then compress it with a 3rd party program (sorenson squeeze) for best results.