Okay i hit upon this discovery recently..Many of you may aldready know this.
Procedure
Case 1

Take a .avi file of say 20 mins and file size 160 MB.

Next Open Nero 6 and Select make a Vedio CD

Select the .avi(or .mp4) file and see hpw much of your Cd space has been
used up

In my case it came to about 213 MB.
Case 2

Do the above steps for a 1hr vedio file of same size or a little
bigger

Check the sapce used on the CD.It will show 676 MB!
IMO the space used up the CD is related to the time in mis the vedio file is and not the size.
I used Nero Digital Codec for both the file and made them to mp4.
Am i right?