Even compressed, you have to allow for about 1GB per half hour, for full-screen - or around 100MB for a three minute, single-song video. That said, if you're prepared to compromise a little (restrict screen size to, say 640x480) this can be reduced. The best option is to provide a streamed video, so that the end user doesn't have to download the lot before viewing it. This can only be done if the webserver supports streaming though.
There are many different streaming technologies and servers (Flash, RealMedia, Windows Media formats, etc) so I would start by asking which (if any) of these the webserver supports. Then you can use something like Windows Media Encoder (free download from MS) to convert the video into streamed format.
VHS is not an option; it is not a compressed format.