Dave, it's going to be about impossible to shrink a 200+ MB video file into any size that will look/sound good and still work to send via email.
A better option is to upload it to a video hosting site like Vimeo, or a large-file-hosting site like YouSendIt.com (free for up to 100MB files, up to 2GB with subscription) or DivShare.com (5 GB of files /10 GB of downloads for free). I like DivShare--the files don't "go away" after 30-days of not being accessed, like at other sites.
You upload the file to their servers, they give you a URL to embed in an email to your friend, who then downloads it off the server via the private link you sent.