You could use Frap's instead of Bandicam, although you have to pay for Frap's I think it's well worth it because it works really well.
With Window's Live Movie Maker, when you have added all the content in go up to the top and it should have a tab called Project I think it is and that will let you change it from 4:3 to 16:9 Widescreen, and that will get rid of the black bar's.
The lag/stutter maybe because you are not recording the game at a high enough frame rate, I generally use 60fps in Frap's when recording and it keep's it nice and smooth.
I also record the videos to a 2nd hard drive rather than the one where the game is installed, as that also help's as non ssd hard drives sometimes struggle reading and writing high data amount's from and to the same drive.
When you are ready to convert the video use the High Definition setting within WLMM as it will use a High Bitrate, I cannot remember exactly what the name of the profile is within the program.
Generally the video's that I upload to youtube are around 5 - 10 minutes long and are normally around 1Gb in size.
Thank you SO much! I do have Fraps but it's an old version (if you know what i mean) but i'll definitely try it instead of bandicam. I also came across the 16:9 Wide Screen option afterwards so i'll give that a try next time. The High definition setting in WLMM I'll look for as well. One problem i had with WLMM is that it doesn't seem to have enough options. For example, i wanted to pause the footage and possibly do some zooms or something but couldn't find anything on it. I think my next video i'll just wait for exceptional clips instead of random clips from a few games like this one.
Anyways thanks again.
I'd also love to see your videos
I don't do any editing etc on mine I just record the gameplay and upload it.
This one is a typical example of what it will look like when you use the 16:9 setting, recorded at 60fps with a high bit rate.
Obviously the file size is larger and it takes longer to upload but I think it's worth it to be honest as you get a nice clear and sharp video.
Here is another one that I just converted and uploaded.
Ignore the rank as I was put in to yet another hacked lobby, just wish the dev's would do something about the known site offering cheats that will destroy your rank etc.
Video is still being processed at the moment so it's maxing at about 480p.