I don't know anything about the blurry part, but as for sound, I actually turned off sound and music in Lemmings 2 itself before I recorded my videos. I do that because I find that the video zips up noticeably less efficiently when there's sound recorded. Of course, that was for the good old days when the forum doesn't complain of 4-6MB attachments. Now that I apparently have to go through FileDen for all my movie uploads, I might as well keep the sound and maybe even skip the zipping......
You're taking summer classes?
Ah, I only disabled the sound in the dosbox.conf, not ingame, which caused the sounds to be recorded into the video.
But no matter what settings I choose in the dosbox.conf, it always results in a video of resolution 320x200 (as opposed to 640x400 yours has) looking blurry/'jpeg-y' and not crisp like yours does. According to the doc the video output resolution is determined by the 'video mode', but nowhere there's an explanation what the 'video mode' setting actually is.
As for uploading, I noticed with 7z you can get your last video down to 3MB, but I don't know whether that's sufficient to get below the attachment size limit. (And DosBox doesn't seem to offer keystroke recordings, which would solve the size issue altogether.)
No, no summer classes; exams tend to be scattered across the semester break over here.Yay steganography!