Compression Method for HD

Hello, was just wondering the best way to compress HD files that i record from Fraps.
Usually i get a 1 minute 30 second clip that is 3.9 GB and i usually do 8 or so parts so about 10 minute in total per video.
I use Virtual Dub but i don’t know the best way to compress, can anyone give me some details how to properly compress HD files to small size files, while also keeping the HD quality?
Thanks
Answer #1
x.264
If you want software that compresses as it records, I recommend XSplit. XSplit is designed for broadcasting live to streaming sites, but also has a local recording option and can record high quality video in a very low file size, no conversion necessary.
If you plan to do post editing and upload to a crappy site like YouTube, you will need to stick with FRAPS or Camtasia.