Personally I record no-sound, half-size, 29.97 fps on FRAPs(Something about 29.97 being the "true" fps that you can perceive; any higher than 30 is just extra effects if any being visible and not worth the size)

I use Vegas, I think 6.0, might be 5.0...I need to upgrade soon I guess, but I work with the .wmv Windows 9 codec, Quality Slider VBR, I usually render at video's original size and slide the VBR slider down to 75-89% Depending on how clear I want the vid; 75% is about as low as you can go with text still being readable, and is a fair tradeoff for less filesize when done. Haven't had a vid over 200mb yet, most 120 or less, being up to 9mins, longest made was 15 cut down from 30mins(Longest. Azuregos Fight. Ever. We had an audience of like 4 other guilds + a horde guild while we did it and it took us forever but we eventually down it without losing our tag on it and while keeping the horde off us lol)