I use 4 programs to make my Videos.
Fraps ($39.00)
COD4Player (Free)
VirtualDub (Free)
Windows Movie Maker (Comes with my OS)

1) Record Demo in the game
2) Start FRAPS and uncheck record sound on the Movie tab
3) Open demo using COD4Player and when recording starts press F9 to record.
Make sure the FPS is set for 30 for better recording.
4) Let the entire recording play and it will be saved in the C:\FRAPS directory as multiple .AVI files
I rename each file starting with the 1st one as 1 then 2, 3, 4, 5, ect.. ect..
5) Open VirtualDub and select File/Open and select the 1st .AVI file.
Edit what you want to keep and what you want to remove.
Then save the .AVI file to a directory (I create a new directory on my desktop for easy access)
Editing and saving each file can be time consuming depending on the size of the file and your CPU speed
6) After editing each file open Windows Movie maker and add all the files and put them in the order you want
You can add titles and credits in Movie maker as well
7) Save the Movie for future editing
8) Then in Windows Movie Maker select File/Publish Movie and save it to your desktop using compression.
9) Upload to your YouTube account
10)You can then add music from YouTube using AudioSwap
I put in one of my own MP3's into Movie Maker before publishing it but when I uploaded it to Youtube it informed me that some countries will not play the music. I try to go through the generic songs on YouTube but it can be time consuming and frustrating.
After uploading the Movie it can take 5-10 min before it shows up and this applies to adding music as well.
My 1st Movie took me about 4 -5 hours to make because of the learning curve but I can make the recording, edit the video and publish it in about 2 hours or so now. This includes playing the game and making the recording.