Video Compression

I am in the pre production stage of a short film. It will probably run around 30 minutes or so.

This is the first time we are using Adobe Premiere, and we have been doing a few test shots and small edits to see how it goes. So far its not too bad, however, we have already encountered one issue.

The naked files that they export are enormous. So big that the computer won't even play them back without a little bit of lag. A one or two minute clip ends up being over 400 mb. I realize that this is probably normal when dealing with high def video, let alone the separate audio.

My question is, what is the best way to compress it with a good dvd or theatrical viewing endgame in mind?
 
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