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A 2 hour movie into 120mb??? Your definition of "good quality" must be a lot looser than mine! :p
That being said, how big/small a given video is depends on the quality you want, both video and audio, and what viewpoint (portrait or fullscreen landscape) you encode in.
There are bitrate calculators out there that can give you a bitrate to encode in if you have to fit the video into N megs of storage space, but none of the ones I've tried take mono and lower audio bitrates into consideration, so they're not entirely accurate.
When it's all said and done, if you can afford the bigger storage card, just get it - you'll fill it quickly anyway! :)
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