Sony vegas 6 need advice!!!! render question

[APFable]

Ok i want to make a video of footage captured in World Of Warcraft PC game that uses Open GL.

I use the latest version of fraps that will allow recording at 1600x1200 with dual core processors. I am capturing at Full mode at 30 fps limit. (usually actually get about 20-26 fps in game while frapsing)

My native monitor resolution is 1600x1200. (samsung 204b)

My in game resolution is 1600x1200.

Using sony vegas 6, i have tried many different combinations of rendering settings and just cannot get it to show my video very clearly. However the uncompressed avi that is produced with fraps is amazing quality. I hope this is adequate amount of info, and I hope someone can help me out here. When i get home from work i will post screen shots of the settings that i am using. thanks in advance.


edit**

system info

E6300 Intel Core 2 Duo
2gb Corsair XMS2
EVGA Nvidia 8800gts
Xi-fi gamer sound card

[guns1inger]

At that resolution you are going to need a pretty high bitrate to maintain quality, which will result in a large file. What are you going to do with the clip ? Does it need to stay at such a high resolution ?