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I don't use Replay TV, but my company does a lot of video encoding.
I would guess by your post Replay TV encodes in MPEG2, hence the larger file size.
You can reduce file size by re-encoding to MPEG4, or Windows Media formats (just don't use WM9, or it won't play on your Axim), if the Replay TV file isn't copy protected in some way.
Windows Media encoder is free at the Microsoft Website, or I am sure a Google search can find you MPEG4 encoder software. I think the MPEG4 encoding would lead to smaller file sizes, than the earlier versions of WMP. You will also need to reduce the size of the video to fit on the Axim screen when you re-encode.
You will lose some quality in the re-encoding, since MPEG2 is already compressed, but for the screen size of the Axim, it shouldn't be too noticable.
Hope this helps!
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