The only method I am familiar with to compress video is Apple's imovie program. That is what I use to make photo slideshows and to edit videos (there is a PC program called Moviemaker that, I expect, does the same thing). The end result is a very large file but it can be compressed. Here is what you do:
Create your movie
Select 'Share', 'Quicktime
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Then select 'Web Streaming'
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Click 'Save'. Your video should be compressed to a usable size that can be uploaded to your blog.
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