I have a Sony DCR-SR43 handycam. I am a amateur photographer. When i shoot some shots, the file size is very large (208 or so..). Is there any software to compress the file.

The size of the file depends mostly on the resolution. Higher resolution gives more detail and the picture can be printed larger without showing pixelation, but this requires more data, so the files are larger. Recent cameras offer resolutions stated in terms of 10 or 14 megapixels. That much data needs a large file to store it. Reducing the resolution in the camera settings to 5 or 3 megapixels (or less) will give you a much smaller file. In the camera, this will usually be specified in terms of pixels wide by pixels deep (e.g. 1600x1200).

You can reduce the size of a picture in a photo editing program (resize or resample), which will also reduce the resolution.

Compressing the file is not likely to help much. Usually these files are in a format (.jpg) that is already compressed. The camera may allow more than one quality of compression. You can set this to compress the pics more, but this will reduce the quality of the image and introduce more digital noise. It is also possible to increase the amount of compression when saving an edited file in a photo editor, by specifying this at the point of saving. None of these will make as large a difference as reducing the resolution by resizing.