Recently bought a new video editing package - Sony Vegas Movie Studio Platinum 11.0.
Previously I had been directly uploading FRAPS videos to YouTube (takes a looooong time) and also tinkering with Windows Live Movie Maker (resulted in horrible blurry videos).
It took a bit of effort to find optimal settings to make clean, crisp videos therefore I thought I would share my experiences and hopefully save somebody a bit of pain.
(I did have a few tips from other Indies - you know who you are, if you're reading - thanks!)
In order to match the 720p format, I started the game in a window at 1280x720 resolution (60 frames per second).
FRAPS is configured to 30 frames per second (otherwise the game runs a bit too juddery).
In Sony Vegas I created and rendered using 720-30p format (1280x720, 30 frames per second, progressive scan).
The critical part here is to specify exactly 30 frames per second (rather than the default 29.97 offered by Vegas). Using the 29.97 resulted in blur and ghosting. This needs to be done in the project (Project / Properties) and the render settings (Project / Render As - click 'Customize Template').
I also brightened up the video, as the compression seems to darken it a bit. I applied a 0.05 brightness increase and 0.10 contrast.
For bits per second I used 20,000,000 and the codec is Sony AVC/MVC (mp4).
I imagine the same rules (30 fps etc) will apply with other video packages.
Hope this helps someone out!
Here's an example vid:
(note at 720p full quality it might need bufferring up a bit beforehand, but it looks fine at default quality if it's left in a window, rather than full screen).