Well first I record a demo in TF2 while playing. The moment I get on a server I open the command line and type "record fileXX" without the quotations. Name the file whatever you want. This is recording a file that can be played back using the source engine of what happened when you were playing. It's like playing TF2 except the file knows what's gonna happen already.
Open TF2 and hit shift F2 to open up the demo file window, hit load, and load the file you recorded.
Now you will need a recording program that will actually make a movie out of what you're watching. I use the full version of FRAPS. I have it set to 60 FPS at half-size. If I set it to full size it gets choppy like you're saying.
When you're watching the demo, press the record button on FRAPS and boom, you're recording a movie of TF2.
Keep in mind that how choppy your videos are during recording is largely dependent on your video settings in TF2 and how good your PC's hardware is. My PC is by no means a powerhouse but as you can see it records pretty darn good.
If your framerate sucks while playing TF2 then it will suck while recording also. If your PC runs TF2 great, but when recording it gets choppy, then you need to lower your graphics settings.
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"A Darwinian attacks his theory, seeking to find flaws. An ID believer defends his theory, seeking to conceal flaws." -Roger Ebert
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