Is there any way to capture video clips as compressed files? I only have 12GB free space and AVI uses so much space. I know you lose some quality with repeated compression, but I wanted to see for myself if it would be acceptable.
You might want to try the HuffyUV codec http://www.math.berkeley.edu/~benrg/huffyuv.html
for better compression.
But before you start capturing, you need to set "Always suggest RGB format for output" in the HuffyUV configuration dialog in order for it to work with VF.