Depends.
The Taking of Isar Tower is filmed with Fraps and converted to MP4, which generally retains its quality but reduces the filesize to a fraction of what is was.
Actually, mp4 is just the container format. What codec you used is much more interesting.
oh, also, i have another question
if you compress an avi file, will it retain it's quality?
Depends on whether the codec is lossy or lossless. Lossy codecs degrade quality a bit, but most people won't notice as long as you have it at somewhat decent settings. Lossy codecs also generally offer much better compression ratios.
