Problem recording/editing video! :(

ImNotFiveAps - Dreamweaver

The problem: My screen is all blurry after I record and I cant seem to get it out of the video. Not sure what the cause is. Hoping you all have some standard settings to help me out with xD

Here is a link to the test video I did: http://www.youtube.com/watch?v=o0vtzQRZ7II&feature=youtu.be


Sooo I have full registered Fraps, and I record video in game with that, the settings are capture at 50 fps, half-size, loop buffer length 100 seconds.

I edit my files with Sony Vegas Pro 9.0c. And there are tons of different render settings to choose from when you go to process the video!

First of all I go to File, and select Render as, as seen in this screenshot here. Then a screen with all these Render Options pops up. And when I open the dropdown menu for Save as type those options appear. And also there are options when I open the Template drop down menu.

And all the possible Perfect World screen resolutions I have available can be located here!

Any help or tips would be greatly appreciated thank you