encoder for windows xp

Hi
Im new to all this and have no idea what Im doing. I have a digital video that I would somehow like to post on my web site. The video was captured by a mini dv, I was told it is way to large to host and needs to be converted to a WMV. So my main question is does all that sound right?, which encoder do I need for windows xp? Where can I get them ?, how much do the usually cost?
I've been trying to get this done since december so any help would be greatly appreciated!
Thank You
Rachel