What is tolerable? Screenshot or video file? Screenshot is no problem (I use VLC and VirtualDub to grab a screenie). If file is questionable, upload a sample and someone (usually ScHlAuChi or JonL) will take a look at it.
When I use VirtualDub, I use it to trim out frames and see changes.
To trim:
X is the first frame. Y is the second frame.
Frame number is located at the bottom of the program? (not the best words. GUI?)
To make multiple trim:
trim(x,y) +\
trim(x,y)
...
Example from Parasite Eve II script:
trim(300,8990) +\
trim(9840,53069) +\
...
trim(378419,408200)
If you want to mix and match scenes (see Dracula X Chronicles), use something like this:
variable1=trim(x,y)
variable2=trim(x,y)
...
variable1 + variable 2
From DXC script:
op=trim(185,12625) # Opening and Prologue
s1r=trim(12626,28480) # Stage 1 (Richter)
s1m=trim(61215,73930) # Stage 1 (Maria)
...
s8g=trim(395407,400470).FadeOut(150) # Stage 8 (good ending)
op + S1r + s1m...+ s8g
It looks complicated, but it is quite simple.
As for compressing: you don't have to use VirtualDub to compress. Use MeGUI to encode the darn thing.
A 120GB file (I believe Psycho Soldier) was reduced to 246MB. No VirtualDub compressing required.
Encoding guide
tl;dr: VirtualDub to see changes and make changes. Use MeGUI to make smaller file.
Tip: adding "#" at the beginning of a script "disables" it.