As mentioned by the previous reviewer, the price is certainly affordable. It would be a bargain if it worked as expected.
Yesterday afternoon I downloaded the software and began converting a 900 MB file. The progress bar quickly showed 20% progress, but after that it advanced extremely slowly. I quit my other applications, including many background applications, and left KandaluLite running. Even though the program is a CPU hog progress was still EXTREMELY slow so I left it running overnight.
I followed the instructions regarding the optimal settings for their codec, and my 900 MB file became a 2.06 GB file. I then exported this file using their Exporter and the file size was greatly reduced. It went from a 2.06 GB mov file to a 1.22 GB m4v file. Still, both were larger than my original avi.
Ideally I would try this again, use other settings, and play with it until I was satisfied with the results. On the other hand, my time is worth more than $6.99 so I'll pass.
It's interesting that 5-star reviews both here and at VersionTracker are from people who have never reviewed another applications. I'm not even going to rate it since I only tested it with one file and the suggested settings, but I will definitely uninstall it.