It will automatically split the film when 700Mb is sellected. When DVD Magic has compressed the film can take upto 3 hrs it will ask you to put a blank CD-R into your CD-RW, when this is full it will ask you for another disk. If you sellect DIVX option, depending on the DVD it may fit on one disk.
If you sellect no limit it will not split the film.
You can also save the film to your HD by sellecting don't delete temp video files.