Get retail version of FRAPS & Vegas keygen
Turn off FPS display, set folder to save movie, hotkey ( I use ` - that little one above tab ), set half size if you play high dimensions (I use 1280x960 so movies are 640x480) and 50 fps - game speed depends on it, we can cut down frame rate later. Of course use 25 fps if your hardware is not good enough.
RO Setup: Use full screen and D3D.
Editing:Sony Vegas is very good and easy to learn. You can download it here:
You can add movies and audio tracks by drag & drop from media manager. Then it’s very easy, but need a bit of practice – cutting, selecting, etc. You should figure that on your own or read manual for help.
Changing speed of video:
Then green line will appear on vid – just hold it and move up or down to change speed. You can also right click on it and add points if you want to change speed of just part of vid.

Remember that after changing speed you need to resize that part of video, so it won’t repeat itself.
Adding text:Add new vid track

And drag & drop preset from Media Generator window - soft shadow with transparent background is great for adding comments
Zooming:

Select part of vid where you want to zoom and click “Create Keyframe”.

Then you can edit zoom settings by resizing that rectangle:
Encoding:
Select menu File -> Render as
There is “template” window under “file type” – click “custom” right from it.

Set 1 aspect ratio! Vegas will change your resolution and it will result in a bit squeezed and lower quality vid.
Divx & Xvid are quite good. Configure them as you like. I use bitrates from 800-1200.

Remember to encode audio! Forgetting that is usually reason of very large videos.