Workflows

My preferred way:

1. Record the ingame video with FRAPS, Gamescam or other tools you might want to use for it.
2. Use Virtual Dub to export the parts of your video material you actually want to use via direct stream copy (no quality losses)
3. Use a video editor like Window Movie Maker, Sony Vegas or Adobe Premiere to add a title, transitions and music. Export the video/audio streams uncompressed.
   
4. Encode the video using Virtual dub. Also do resizing and filtering here.

The fastest way to make an video

1. Record the ingame video with FRAPS, Gamescam or other tools you might want to use for it.
2. Encode the video or a single segment using Virtual dub.

The way that costs the least HD space

1. Record the ingame video with FRAPS, Gamescam or other tools you might want to use for it. Lower resultions mean smaller files.
   
2. Use Virtual Dub to export the parts of your video material you actually want to use via direct stream copy (no quality losses) and delete the original recordings.
3. Use Virtual Dub to import all segments and encode the results. You can use a video editor too, if you use the built in functions for the encoding but a lot of applications write preview files onto the harddisc which increases HD space usage.