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Encoding The Video

Encoding your videos with a codec is a very vital part of preparing your videos for viewing, during the process of encoding you can edit the video by cutting out and adding sections to the video or if you have more advanced tools (such as Sony Vegas) add effects and text overlays. Aside from those encoding also cuts down on the file size of your video dramatically, (Normally a FRAPS recording for me is ~4 gigabytes for a 1m30s clip, after encoding it sits around 100 megabytes) allowing for more manageable uploads to your video site of choice and shorter loading times for viewers.

Virtual Dub

I then use VirtualDub to edit and compress the video using the XVid Codec (Gotten from the K-Lite Mega Codec Pack) and here's a guide on how to use the XVid codec:
VirtualDub: http://www.virtualdub.org/
K-Lite Mega Codec Pack: http://www.codecguide.com/download_mega.htm ***Be sure to get the Mega version :P***
Guide: http://lparchive.org/techsupport/guide-2passvdub.html **Although instead of using 1000 bitrate, up it to 3000 and you're good to go!**

Sony Vegas Users

If you want to use Sony Vegas for your editing try the following:
Sony Vegas Rendering Codec (Be sure to change the framerate to what you recorded at!)
http://www.youtube.com/watch?v=ysFc9XNbveU

Noise Removal

For those who have heavy noise because of your microphone or fans in the background then here is a REALLY handy guide to fix it:
http://www.youtube.com/watch?v=mlKX6p85R2M
**Note: I realize that the video itself does have noise in it (lol) but it does work well, I have used this technique before in some of my announcement videos!