This is the first option to look at. Switch to Video options tab and move "Output video quality" slider to the left values (low quality).
SWF Flash MX format is more advanced than Flash 3+ one and results in much smaller output file size and better quality. However, to be able to view the resulting Flash movie, you and your clients need Macromedia Flash player version 6 or above to be installed. In order to select SWF Flash MX option switch to Output options tab and select corresponding radio-button option.
By decreasing Sampling and bit rates (moving sliders to the left side of the gauge) you can save few more bytes of the disk space. Additionally, you may convert incoming stereo audio stream into a mono track: for the home-made video clips, for instance, you will not notice the difference between the two.