I have a rather large video collection and it takes up a TON of space. All the files are MPG and were transcoded as either MPEG TS or MPEG PS using the mp4v codec for video at 1024 kb/s and mpega for audio at 192 kb/s. I would like to save these video files as some other type of video file so that they take up less space, but I don't want noticeable compression - I tried transcoding them as mp4v and mp4a in an mp4 container, but the video appeared blocky, sort of like dithering in GIF images or TV image censoring, if that helps explain it. I know MPEG isn't the best choice here, though. I don't know much about the different types of files or containers or transcoding options available or how to use them.
Could someone suggest a way to shrink these files without noticeable loss of video/audio quality, and tell me how to do it?