Video and audio codecs
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Codec is short for Compressor/Decompressor, indicating the software used for compressing/decompressing the video clip. If a codec isn't used, a feature film will take up a lot of space on your hard drive – as much as 30 GB. Such amounts of data are always hard to handle, so there's a lot of sense in compressing the clip. And it actually doesn't take much to boil down the gigabytes to megabytes.
MPEG-4 V2 is also a good solution. This codec is great on all platforms (including Win 7 and 8. Ignore all warnings and install it!)
The Avid MJPEG codec also yields excellent results.
MPEG-4 V2 can be downloaded from http://www.undercut.org/msmpeg4
The Avid MJPEG codec can be downloaded for free at several sites, eg. http://www.downloadatoz.com/codecs/avid-m-jpeg-codec,download.html
Make sure the right codec (for recording only) is chosen on the tab Options/Setup/video configuration/video cache.