Well I've been a PC user for only 5 years or so, 4 of which I've been a gamer, and only 1 of which I've been making videos, yet I know enough about it to teach the basics. I think you're overcomplicating it, most people think it's much harder than it really is. It's very affordable and easy to learn, in fact you can actually do it without spending anything if you suffice with adding music to your videos instead of recording the game sound with the video.
Movie Maker 2 is free with XP SP2, and a very good editor. Game Cam's free demo will record video non stop, but not audio. Game Cam's "Lite" version is only $10, and will allow you to record in game sounds. Game Cam is looking to reinstate their widescreen capturing option (unstretched), after evaluating a minor bug in the latest build version.
Also, don't assume it takes a cheezy free webspace setup to host your videos, or that free hosting sites are too much trouble or lacking in features, that's not the case anymore. I have my own filepage on Filefront's free hosting service. They allow files of up to 1 gig in size, and as many as you want. They will never delete them based on views, there are no restrictions other than the normal laws. They even allow you a 750x85 pixel banner and the ability to arrange your files in directories and subdirectories.
Filefront is just one example though, there are a few others, one of which is Putfile, a site that streams video files of up to 25MB, and also allows an even more customizable personal filepage (I have one with them too). They do, however, delete files if they are not viewed for 6 months.
I can offer links to Movie Maker 2 and Game Cam tech forums, as well as essential information on how to make custom compression profiles (necessary for widescreen videos). If we get a sticky or thread started for videos and video making, I could also participate in that to help people with basic questions and answers.
Sorry that I have not checked in on this thread I started sooner, I've been up late the last week watching the Olympics. :wink:
(EDITED) OK, here's an example, my first widescreen video, done about 5 weeks ago, along with my filepage header:
(Realistic mode, 7:20, no scratch. Music is This Life & Think, by Drowning Pool.)
Asunder: Tunnels of Turmoil (Far Cry's Control level-104MB)
The search for Valerie begins!