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How Can I use Arista Transcoder or Transmageddon to shrink a Video file? Any other recommendation for a software that can shrink videos?

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The accepted answer to this question shows a very detailed way of minimizing video size using Mobile Media Converter: How can I maximum compress video files?

You can also use Arista Transcoder.The best compromise between quality and file size should be a mpeg4 file with xvid encoding.

Handbrake is also a decent application for video encoding (and superb for DVD ripping). A tutorial of minimizing file size is here on Youtube: http://www.youtube.com/watch?v=BLVBb4zSdDo

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I think the application called VLC will do this. Just type VLC in the search box in the Ubuntu Software Centre, and install it from there. Good luck.

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