I burn all my .avi files to DVD (as data files) when I've finished processing them. (just the other day I burned my 40th DVD of avi files captured with the ToUcam!

)
All my finished and intermediate processed files go to my internal 300GB drive (which is then backed up onto my external 250GB drive via Second Copy) on my desktop.
In that way I keep the files on my lappy down to less than 1 DVD (4.7GB) at the start of any imaging session.
Al.