Hi
Yea i have used fraps, but the in game avi renderer gives much better quality even tho it takes a while to render. Ive just started trying to make these "movies" & tried a few different types of compression codecs, mpeg2 seems to be about the best for near lossless compression a 30min track rendered to 450mb file size at 100% quality & 30fps. Compared with Windows Media Video9 codec a 15min track rendered to 385mb file size at 25% quality & 25fps. Disadvantage of using the mpeg2 codec is once you start to render an avi you cant use your pc, seems evey window you open, every popup you see on your desktop ends up in the rendered avi.
Also i found that if you used F10 map veiw at all in the in game video edit (ctrl-e) then somehow during rendering it replaces this with satelite veiw & thereafter all your cool F2 external shots are now satellite veiw...maybe one for the bug report there. This dosent seem to occour when using the WMV9 codec to render & you can also carry on using your pc as normal without the desktop environment appearing in the end avi. Im getting into the habit of leaving pc on all night & let it render while i sleep to be safe.
Im using Sony Vegas 6.0 to edit the avi file...cut out the crap, add FX tittles & sound track & then rendering once more with that into an mpeg2 or wmv. My first movie (http://www.la15mary3.com/movies/su25t_ship_strike.wmv) ended up at 60mb for just over 5min of run time with 25% quality at 25fps.
Btw i still havent got the in game sound to record, i have 2 sound cards installed, one on-board & one PCI, seems it was recording mic input & not game output, still working on that....Weta i think your onto something there, ive been using different sound codecs in the render options...might just try it again & leave the sound "uncompressed"