Here is what I found and what works wonderfully for me.
- MP4Cam2Avi Easy Converter - this is portable (as in - no installation necessary) software that, as it claims, produces an AVI file that unlike the original that came from the camera, can be edited in VirtualDub and other programs. In my case, it produced AVI files about 1:5 of size of the original.
- XMedia Recode - this is also portable software (*) that converts between different video formats. For example, I asked it to convert the output of MP4Cam2Avi to MP4 and it gave me the file of about 1:10 of the size of the input (total 1:50 of the original from the camera) that was visibly just as good and totally noise-free.
- I am in no way affiliated with the makers of the above programs. So use them at your own risk.
- My interest is video is most casual one. The quality of the final output produced by this process is absolutely sufficient for me, but your mileage may naturally be different than mine.