Please take a look at this video:
in Youtube past ---> /watch?v=P54WxGsSI-Q
That is my failed attempt to create a HQ video for Youtube. Indeed, it's my first time using video software tools

(btw, I'm using Sony Vegas Pro 9.0)
So, is there any way I could get a better quality for these kind of videos? I know I'll lose some because I'm resizing the footage from 480x272 to something like 1280x720.
The RemoteJoy Lite recording was made with Fraps.
My uploaded video was made in Windows Movie Maker, so I know I could improve it in Sony Vegas. For example, I read something aplying Xvid MEPG-4 codecs while rendering, but I'm still pretty confused.
I tried rendering the same thing with a 1280x720 Xvid MEPG-4 codec at max quality, and the file was over 1GB, lol.
Help needed =(