Recording Game Footage with OBS

Right now on my gaming channel I can only really stream to twitch and then pull footage from Twitch and posted to YouTube raw. This is because I have Windows movie maker (don't hate me I'm poor) and it cant handle .flv files that OBS puts out. I know how to change it to .mp4 files but there is a HUGE quality downgrade with that. I was wondering if I could possibly rectify that in OBS's settings, so what would be the optimum settings for OBS paired with windows movie maker? I will try to get a better editing software to so I would also like suggestions for a good starter editing software. Thanks!
 
download vegas pro or something else on piratebay also get a craked version of xsplit its much better and you can record gameplay in full hd 60fps f**k using obs its free for a reason as its very limited
 
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