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Trailer making - What do you use?

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Good Day, I'd like to ask for suggestions on software and methods which people use to capture and record videos of their work to show as trailers. Currently, when I use a screen capturing software to create the avi file, its has good quality and high resolution. However, once I post it online, say in YouTube, the quality dies! My question is - How can one capture and post good quality trailers and videos on the website without lossing quality. (I'd like visitors to view the trailers online from the site) Thank you.

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(I'm on Mac)

I'm recording to AAC which has great quality and is easily decoded which makes editing tasks much quicker. Then I load the AAC file in Final Cut Express where I edit it. I usually export to 640x480 H264 and with 48KHz sound. I've found that this setting yields a video for which YouTube will add a 'high quality' version.

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