Microlighters

I have started toying around with Vid camera's. What settings and software do you guys use to make the vid's. I cant get res high enough without making the files huge...

Below what I captured.
http://www.youtube.com/watch?v=pVxwCcagOPE

MP4 - I use Pinnacle Studios product for editing (Forget the name - It is the cheapest at Incredible corruption) , very amateur but works easy

http://www.youtube.com/watch?v=Tdf4ahLdgUg