The video lags as the lag was while playing it, so while it is recording yes. I usually get arround 80fps then i turn recording on and it drops to 18!
Man.
You take criticism well, and you have shown the capability to improve your work. But your biggest barrier may be one that no amount of skill or grace will fix; substandard hardware.
Recording video while playing games requires a good CPU and graphics card I believe.
I recommend you try and record the game in 800x600 or any resolution lower than your current one, and in windowed mode. This is your best shot at freeing up resources and getting a smoother result. That will pose challenges in editing, but you will still be able to work with it.