Yea, that's a normal size for a movie in DIVX or XVid format. It's a near DVD quality codec. It'll play fine in most PCs if you have the codec.
For converting the file into DVD format that a regular DVD player can play. I use WinAVI to convert the file into DVD file format. Then use DVD Shrink (works on top of NERO) to author and burn the DVD image.
For so so movied I leave them in their DIVX XVid formats. As I can squeze 4-5 movies on a regular DVDR. But, if it's a good movie, I'll burn them as a DVD movie on a regular DVDR.
If your using a Torrent app to d/l the movie. Make sure you install/run PeerGuardian 2. It's an IP blocker that will block studios, RIA, MPAA IP addresses...it'll make it less likely for them to connect to your PC if you Torrent. It can save your ass from getting a nasty gram from your ISP..when they track your IP address. PeerGuardian easy to use.