I captured the first 20 seconds of the "demo1.dem" which is shipped with Nexuiz v2.0. As you might know, this scene provides really heaviest fast non-stop action!
I set the cl_capturevideo_fps value to "90", set the resolution to 1600x1200 and set 2xFSAA (at such a high resolution 2xAA should be really enough).
My final movie has these specifications: 800x800, 30 FPS.
So what I did was to import the 20 second clip (which consists of 1880 TGA files, about 20 GB in size) to my editing app, downscaled the scene to 50% (to get the 800x600 resolution) and set the clips speed to 300% and activated the blending of frames to make fast motion smoother. I speed it up to 300% because I had a 90 FPS clip, which means that it would have played at only 1/3 speed if put into a 30 FPS movie comp. however, when speeding it up to 300% it has 1:1 game speed again.
Beside this I did some gamma correction and color boosting. Then I exported the tga sequence to a 30 FPS 800x600 Huffyuv coded avi clip (lossless).
Then I compressed it with 3000 kbps first, but the result didn't look too good, so I decided to take 4000kbps which looks okay imo.
I compressed it with both x264 and Xvid. I optimized the codecs settings to be as good as I was able to set them up. I used Media Encoder to compress the clip with x264 (3-pass, and 128 kbps audio, stereo, encoder: lameMP3). As I was unable to compress it as Xvid using Media Encoder I did it the oldskool way with VirtualDub, 2-pass, anyway, I just had a 56 kbps mono 21khz mp3 codec there, so the xvid file is smaller in size.
You can download the two files and compare them. IMO the x264 version looks okay. However, what I wanted to proof is that 4000kbps is really the maximum you will need for superior video quality, beside this I consider 800x600 and 30 FPS "enough" for fluent play, too. Please note that this clip is extremely fast in motion and stresses the codecs a lot, which means that it is well possible that 3000-3500 kbps will suffice for a production movie as such movies don't have full speed all the time anyway.
Beside this I think that speeding the clip up by 300% is too much, since I think it makes it too blurry. I will only capture it with 2x of the target movie framerate instead of 3x to have it less blurry, but still fluent. I also think (but I can't prove that of course) that such a very blurry clip makes it even harder for the compressors to gain good and effective results, as you don't have any sharpness in the image anymore which is the advantage of these compressors. Anyway I consider x264 still suitable, even for such blurred clips

Enough said, here are the clips:
x264 version
xvid version