What do you use to record Minecraft?

[TheRomanticsWB]

I swear by Fraps. I used to use Xsplit's local recording but wasn't 100% happy with the quality of the footage and it corrupted a little too easily. Yeah, fraps has huge file sizes but so long as you back the data up if you're not planning on immediately rendering or editing it then you should be fine.

Xsplit has a serious problem with Local Recording. I had the same issues you had. I can NEVER get any quality out of it even using custom code within the player for Lossless video. Just looks like crap no matter what. Xsplit is also a giant resource hog.
Fraps IS very good for local recording.