To Convert Large video files that were ripped from BluRay to a more manageable size that will display with the highest quality on up to a 42'' Television screen, without excess file size that will overload your video card and slow down your system, you need the following free tools:


Handbrake 1.0.7 (or higher)
 
https://handbrake.fr/downloads.php

If you use windows 7 or 10, you will also need Mircrosoft .NET 4.6


Install Handbrake then use following settings:

Preset: Fast 1080p30

Output Settings: 

Change the following settings only -

Container: MKV

On Video tab...

Select Avg Bitrate (kbps): 8000

2-Pass Encoding: Un check this box