I record with FRAPS using 29.97 FPS @ FULL resolution, which on my monitor is 1920x1080. In Vegas I encode to WMV using either the 1080-30p or 720-30p settings with a few minor tweaks. The default WMV settings are fine for YouTube just the way they are though. As for filesize...YouTube will allow videos as large as 2GB which, you won't be hitting that limit unless you crank the encoding settings to max...which is complete overkill anyway.
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