Raw gameplay footage is recorded with FRAPS. I use audacity to record my commentary on a separate audio channel. I do all my editing in Sony Vegas, which is then rendered in a raw avi with the Lagarith Codec. Finally the video is compressed using xvid and virtual dub. This provides the best quality possible with smallest file size. (15 minutes 720 videos are still huge thought, almost 1.5 gb is not more)

After countless problems part 2 is ready to be rendered and compressed. I'm gonna post this on the rabbit journal as well. I want as much feedback from the community as possible.