Fast video converters

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Dumb and Dumber

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I do currently have programs that can do the editing I want, but they are ridiculously slow. My ancient 2.0GHZ core due maybe is partly to blame and I've only got 2GB of ram if that is going to mean something.
I don't want much. I just want to downgrade videos from 1080P to 720P or in some cases to even less. This is too save some space.
The programs I have now seems that they will take 10 hours to convert a video of 8GB to a video of lesser capacity.
Are there a program out there that will convert my 8GB 1080P AVI files into 720P AVI files in less than an hour on my current CPU? 
Will more ram etc make a big difference? If I add another 2GB of ram Windows XP will only see 3.2GB apparently. So it does not really seem worthwhile for me to upgrade my ram.
 
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