Captivate demo video quality

I am creating demonstration videos with Captivate for a client who are implementing new time management and reporting software. They want individuals to be able to go through the training alone on a computer monitor, and also want an instructor to be able to show the training on a big screen at the front of a classroom / auditorium. I have completed a large 130 screen video and initial feedback says the video (asset) quality needs to be better.

1. How can I maximize the quality of a demonstration VIDEO?
2. If I publish to HTML instead of video, will this improve the quality?
3. Does the way I save the screen images affect the video quality? (Should I re-save them to bmp or something else. I saved them as jpg)

Any suggections would be tremendosuly appreciated.