QUOTE(MadFax7 @ Aug 13 2007, 10:21 PM)

Keep in mind that Snapz records to the boot disk, and nothing else. There is currently no way of changing this.
Apple Pixlet Video and Apple Intermediate Codec have considerably good compression ratios for what they are—either would work fine for your purposes. Pixlet offers essentially the same quality as uncompressed video, while being 20-25 times smaller. Do not listen to people who tell you to use the Animation codec, they are giving you severely outdated information.
Unfortunately, there is currently a bug in Snapz which prevents you from using any codec at the "best" quality setting, so you won't see perfect results regardless of what codec you use. Pixlet seems to do the best job of limiting artifacts caused by this bug, while still maintaining a decent compression ratio.
Glad I checked in. The "medium" reference in the codec description was driving me nuts. I have been working through the list but haven't used Pixlet yet. Most of the time I just settle for the "none" setting. Of course my situation is different than the one described by
orochimaru but in a basic way similar. I am running RealPlayer and capturing segments of it's screen. The test uses the default size of the player for that stream so my iMac G4 800MHz machine does not have a 'heart attack' (note: I don't expect the GeForce2 MX to be perfect. Just do enough for compare. I like the slow old lady, walker and all). Here is some data from video grab without compression.
CODE
Stream: RealPlayerScreenSnapz001.mov
Path: /Volumes/General/ImportedVideoAudio/video/RealPlayerScreenSnapz001.mov
Duration: 0:08:45
Data Size: 3.30 GB
Bit Rate: 53.83 Mbps
Video Tracks:
None, 316 × 236, ~30 fps, 53.69 Mbps
Audio Tracks:
IMA 4:1 mono, 32 kHz, 136 kbps
Stream Files:
RealPlayerScreenSnapz001.mov (3.30 GB)
While MPEG Streamclip makes a Pixlet version of the example above I'll just say a word or two about the /var/tmp problem. I am working around that limitation by manually moving files. More about that is in another post
Snapz Pro X - location of temporary movie file? 
When I have more info on my safer but painfully time consuming method I'll update the post. Here is the conversion data on a run that generated the wrong file (can't type) but the compression is nice.
CODE
[oops, I did not want this (fig.1). Making Proper mov file (fig. 2) - duddits]
fig.1
Path: /Volumes/General/ImportedVideoAudio/video/RealPlrScnSnpz001-UnScaled316x236_avi_pixlet_CQ80-Trun_1a.avi
Duration: 0:08:45
Data Size: 329.44 MB
Bit Rate: 5.25 Mbps
Video Tracks:
Apple Pixlet Video, 316 × 236, 30 fps, 5.00 Mbps
[This is the correct file for my compare -duddits]
fig.2
Stream: RealPlrScnSnpz001-UnScaled316x236_avi_pixlet_CQ80-Trun_1b.mov
Path: /Volumes/General/ImportedVideoAudio/video/RealPlrScnSnpz001-UnScaled316x236_avi_pixlet_CQ80-Trun_1b.mov
Duration: 0:08:45
Data Size: 328.86 MB
Bit Rate: 5.24 Mbps
Video Tracks:
Apple Pixlet Video, 316 × 236, 30 fps, 5.00 Mbps
Audio Tracks:
MPEG-4 Audio mono, 44.1 kHz, 247 kbps
Stream Files:
RealPlrScnSnpz001-UnScaled316x236_avi_pixlet_CQ80-Trun_1b.mov (328.86 MB)
The Pixlet video looked good with some artifacts and blurriness at double size & fit screen, not unexpected; forget full screen because it is beyond reason to expect it. One got you (for me at least) is VLC hates both; it calls uncompressed, "araw" and Plxlet, "pxlt", and declares no codec error. Duh! So, at the expense of dragging you into my insanity. Sorensen 3 looked as good. Would it also work if the finished video is HD as described earlier?
EDIT: not? I got "rainbow" effect (on the room's walls) and motion was distorted when anything moved. Guess the better is Pixlet. For compatibility I guess I am stuck unless I use QT export to MP4. -duddits