I've been trying to use snagit. I tried windows movie maker as well. It comes out pixilated, really bad. Do you save as avi first. I've tried that. It gives me an error message when I click full screen. Doesn't fraps only record in 30 second clips?
I save as WMA since I can put those on youtube. If you use windows movie maker, to save as WMA go to publish movie, this computer and hit next, choose where you want it and what to call it and hit next, then choose what you want it to be compressed to, and click on "more options" and select "Windows Media Portable Device". Hope that helps. I've gotten pretty good results with this. I have the vista widows movie maker if that matters for the steps.