Video compression help! Black Magic Intensity Pro

I have installed the Black Magic Intensity Pro in my PCI-e x1 port and it works great. I captured several clips from my XBOX 360 at 720p with an MJPEG avi capture configuration and it works amazing. My question is, what is the best software to compress these large files(4-7 gb) into a file that can be uploaded to youtube. I know you can use Adobe cs3-cs5 to edit them, but can you use these programs to compress these files also? What are the best settings to use? I do not want to jeopardize the quality of the capture, yet I definitely need to compress the files significantly. I am fairly new at this kind of thing. Any help would be much appreciated. Thanks.

Justin
 
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