Ideally, you should do your initial recording in a native format like mpg & render to flv once your editing is complete. In the meantime, you can use an app like Pazera w-shadow.com/files/flvtoavi/pazera.zip to convert your existing files to avi or mpg for your edits. Generational loss will occur but how much will depend on the resolution of your original files.
A more complicated, but probably higher quality way (if your underlying video is H.263 or VP6) would be to install Moitah's FLV input driver moitah.net/download/latest/FLV_Input_Dri... and frameserve from Virtualdub to Camtasia.
Why not try Xilisoft FLV Converter. You can edit your flv files freely and easily,you can clip,split,crop the video and set the advanced parameters for the video. It's easy to use.It will meet your professional setting.
You can have a try.
Maybe you can use boilsoft flv converter to have a try. It has a mini video cutter which can help you edit the flv video files as you like.
There must be a simpler way to do this, but this is what I found. sitepoint.com/forums/showthread.php?t=45....
You really don't want to do your editing on an FLV file. Your best bet is to convert it to some kind of lossless or high quality video format, edit it, then export it as a flv when you're done. To convert from FLV, you can use SUPER (erightsoft.com/SUPER.html) and I would output to a high quality AVI.
Then you can edit it, try windows movie maker, it's not too terrible (final cut on a mac is what you should really be using :). Output as a high quality AVI and then use super to convert back to FLV. Since all you can record in is flash, I would choose H.264 and the highest bit rate your computer can keep up with.
This will give you the best quality to start out with.
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