Beginner Recorder Help

[Portalboat]

http://www.youtube.com/watch?v=zJmaTMQvtIs

That is my first video recorded in Left 4 Dead 2, and the first uploaded to YouTube at all.
It's OBVIOUSLY bad, not from the content (maybe a little) but from the quality.
Because of that, I have a few questions:

The lag seems to be severside lag. Based on how the Source Recorder works, it shouldn't catch the clientside. How could I get rid of that?

The "blocks" of color are also bugging me, is it something to do with the compression?

Also, I want to know how you would add text to the video, like the god of L4D and L4D2, Criken, does.

Thanks!