set your framerate to 15 fps. you'll still get a big file (but not as big), and then when you edit it, etc. the file will compress down to something more manageable.
you're free to add music from anything, as long as you just intend to show your friends (ie. gaming boards) but if you intend to profit from it, then you might have trouble if the wrong person notices.
to edit, you can probably use the MovieMaker that should be on your computer, otherwise you'll have to learn to use something like Premiere Pro. I use it all the time, and it's easy, but if you just want a quickie movie, then you have to decide if the investment is worth it.
i've used ACA screen recorder to record the computer screen, and it has an easy Hotkey-function interface. So you can run it, then run RTW, and when you want, hit the Hotkey and start recording, etc.
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