[spydrct02]

Weird, I don't see the outside world on your video. At first I thought it was a huge load time.

Yeah, Fraps outputs video as uncompressed. I sometimes mistake decompressors as a codec when I see it in a codec list, so my mistake if I said anything about a Fraps codec (I'm pretty sure I did).

I recommend using DivX as a codec in VirtualDub. I'd leave the bitrate as default within the DivX configuration, mostly because YouTube doesn't convert the videos to very high quality anyway. If you recorded audio, you'll probably want to disable audio encoding within VirtualDub, unless the audio is something you want in there, in which you'd want to compress as well.