Apple/iOS: record videos via iPod touch; reduce video size? I have the latest gen iPod touch: which has an HD camera with mic. I
want to record class lectures and such but the files are massive that
it produces: 4+ gigs for 1 hour using the built in app. Is there a
setting or another app that will allow extremely high quality audio
and video without the cost of such a large file?

Currently I record, sync, encode then watch.  My 1 tb HDD is filling up quickly.

Any suggestions?
"Extremely high quality audio and video" will take up a lot of space, so you'll have to compromise on quality if you want to save on file size.

I would suggest using HandBrake to re-encode your videos at a lower bitrate or smaller size.