Please do not convert into WMV format, most people's LW filter wmv files out.
Different formats to convert into. At one end you can convert to a single video file, recommended would be MPeg 4 H.264 format either as an avi or mp4 file. Alternatives would be divx or perhaps mpeg 2, however mpeg 2 is now a little old. MPeg 4 & especially H.264 variation of MPeg 4 is the best at retaining video quality & compressing down to a smaller size. MPeg 4 files are higher quality at same size or even smaller than MPeg 2. Some tips about video here Movie download issues (click on blue link) (2nd last post has information on best video formats.)

Other alternative is to use a dvd compressor to compress the dvd TS_Video folder down to 4.36 GB. Zip or RAR it, then share that, would need to give it a good description, give it a video description as well as a program description. (This is the larger share option however doing it this way.)

To share the file, simply place it into your shared/saved folder 'if' those folders are being shared. Alternatively, create a new folder for it, place the video file inside. Go to LW's options -> Sharing, Browse to that folder & Add. That's for LW 4. (Add a description to it by selecting in LW 4's Library window, press Describe & give Video description.
For LW 5 very simple, drag & drop the file onto Library icon. Go to that media type in Library window, right-click file & choose Share with P2P Network. You can Right-click that file, choose Get info & add details to it.

If you wished, you could also list the file at Bitzi. How to use Bitzi. You would need to download their bitzi tool to do that.

I share both archived TS_Video folders & files converted to mpeg 4. For one video I have both & was surprised to see someone downloading both at same time. lol I retained the original video viewing dimensions which as PAL 720 x 576 pixels.

A Tool I like to use for converting videos to MPeg 4 H.264 format is MPEG Streamclip (free) & choose Export to MPeg 4 & choose H.264 from drop down menu & select Multipass & B-Frames for a higher quality conversion (but takes twice as long). However there's lots of good conversion programs & tools out there for Windows. BTW X.264 codec is same as H.264, simply an open source version.