I just downloaded and fddled around with Windown Media Encoder Seriers 9. What i've found is that I can throw the clip into WME9 from fraps, then import into my collections in WMM. The quality in WMM is bad, but as pooface mentioned, when you save to movie and select "best quality" it transforms into a perfectly good quality film when played in WMM as a finished product. I'm testing different compresssion rates in WME9, Morph which would u recommend, i've tried High Quality which took ages on the second pass, DVD was ok, and Windows Stream was ok.
So I lined the same clip, just compressed differently in WME and then converted from WMM to a movie, but all the clips back to back looked the same, no real difference?