How can I improve my PC gameplay recording?

Just recently I bought a new PC, nothing fancy just a mid range machine as befitted my financial situation, a friend of mine who lives thousands of miles away would like to build a similar machine so that he can play newer games such as The Witcher 2 or Battlefield 3.

I suggested to him that I record video of my gameplay and post it on YouTube so that he could see the performance a mid range machine would offer him in terms of graphical quality and frames per second, so I recently set about doing this but I’ve been having problems with the video.

Recorded video seems choppy even when gameplay isn’t and when I do get a reasonable video using Fraps or Xfire the YouTube video has tons of artefacts.

I have included an example video below so that you can see what I’m referring too.

I know i'm bad at the game but i really just wanted him to see the combat, I appreciate your input.