I don't know if you're on a mac or windows computer but the easiest thing to do would probably be to use Windows Movie Maker (if you're on windowsXP). Your video camera might have come with video editing software as well.
If you have Movie Maker, just choose to import video from the menu on the left. Find the movie, and it will show up in the middle section of the screen. Drag and drop it into the empty box at the bottom of the screen.
Add visual effects if you want, then click "save to my computer." It will ask you to name the movie and where you want it saved. After you do that, the next screen will ask you how you want it saved and a predeterminded setting will already be chosen. At the bottom of that screen, it will show you the file size, etc. You can click on "show more settings" for a drop-down menu of more settings and you can change them to see if any of them make the file smaller.
Once you do that, click next and your movie starts saving.
From there, you can upload to zippyvideos.com, as long as your file size is small enough.