If you have Apple's Developer tools installed (i.e., there is a folder
at the root of your hard disk named Developer) then you can follow the
directions on
http://code.google.com/p/vidnik/source/checkout do
download the source code for Vidnik. The video quality comes from the
file NTDCaptureSession.m line 188, with the line:
QTCompressionOptions *videoOptions = [QTCompressionOptions
compressionOptionsWithIdentifier:@"QTCompressionOptionsSD480SizeMPEG4Video"];
The documentations for QTCompressionOptions says you can change the
identifier to @"QTCompressionOptionsSD480SizeMPEG4Video" to get
dignificantly better video quality.
Or you can give up on Vidnik, use iMovie or Quicktime Player Pro for
recording, and just use Vidnik, or the website, for uploading.
I'm guessing that Vidnik makes it fast and easy to get your job done,
though.
How, beyond creating the quality you like, could Vidnik be improved?