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Pretty much minuscule if any, the veneer like effect only appears if your looking for visible differences. Encode that with H.264 and your going to get near ingame quality if done right.
The quality still stands up to scrutiny, however the OP has set himself his own high standards which will only be met if Fraps improves upon its own in house codec.
Seriously, only way to get better is to design your own custom video capture device.....although I hear the possibility of that for WoW may actually be in the works!
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