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try doom9.org for a tutorial on it. I believe you can use a version of Virtual Dub that supports WMV or ASX files to do what you're looking for.
Personally, I use NeroVision Express. It converts anything to DVD, just about, so I make a virtual disc with the file, then can re-rip it if I need to as a .avi file, without actually using a disc. However, this does take up quite a bit of hdd space (Can take up to 9GB for a full DVD, dual-sided).
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