I thought that most of the videos on YouTube were in FLV format (Flash Video) or at least they used to be (and having just read an article, it seems that YouTube converts your file to FLV, whatever format is uploaded).
FLV was intended to provide streaming video for websites and hence had to provide reasonable quality without too much buffering. it also means that the viewer does not have to download a codec to view the video.
Yes HuffyUV is an excellent lossless codec which I often use as an intermediate when converting between formats but it still produces large files that are too big to be streamed.
@Degsy - as soon as you import your FRAPS AVI file into VirtualDub you lose the compression. VirtualDub will not create WMV files - a result of the heavy hand of Microsoft early in its development. Instead I would suggest that you save it as a DIVX/MP4/Xvid file (which compresses it again), or as HuffyUV file if size does not matter. But first you have to get the appropriate codec.
For example, Xvid is an open source version of Divx so you might want to try that first since the download and install does not leave bits scattered on your PC:
http://www.xvid.org/Downloads.15.0.html
Once installed, start VirtualDub, load your AVi and then from the menus select Video and then Compression - Xvid MPEG-4 codec should be there. Select it and accept the default by clicking OK. Then choose from the menu: File, Save as AVI - give it a new name and click "Save" - hopefully your new file is small and good quality. Anyone else will need to have a suitable codec to play it.
And VideoStudio 11 may also be able to use such codecs - I don't know since it is a long time since I bought any video editing software, instead preferring virtualdub and avisynth to roll my own.
If you want to try creating FLV files ready to put on a website (needs a bit of code!), then the Riva FLV encoder works well
http://www.rivavx.de/?encoder
See comments here on relative merits:
http://www.matthijskamstra.nl/blog/inde ... -software/
And if you want to play just about anything, try this:
http://www.erightsoft.com/SUPER.html
If all this is gobbledygook, let me know if you want it simpler. ;-)