I already asked that question, check ter-o's post on the first page.
The settings I've been using are:
TechSmith Compression Codec (TSCC)
Highest quality setting
15 frames per second
Keyframes every 10 frames (makes seeking nice and smooth)
Captured in 32 bit, screen res 800x600, recording res a smaller region that only displays most important windows/palettes.
This can all be set up really easily in Camtasia--it's a simple but powerful screen recorder/video editor.