So I took an avi file off which left me with 1256 MB in free disk space. I once again was able to get through the entire title writing portion, but as soon as it gets to the next step I get the same "failed to compress" error msg.
Could there be something wrong with my avi files that would cause this?
I have preplayed all of the files and they work just fine in any media player.

I am totally lost on this issue. any help is appreciated.