I used virtual dub to compress the video. DivX mpeg set to the same parameters that you see in the link Raze provided.
Though it doesn't have to be that size for youtube, because when you upload it youtube will convert the size. But has to be under 100 megs and under 10 mins (If I remember right when you upload).
FRAPs produces only uncompressed avi's because as Raze mentioned it would only impact the game if it had to compress it on the fly.
I just convert the avi's then delete the original.