I used FRAPS to record my lap.
You have 2 ways of recording:
:: Record it live as you do it, though it reduces your FPS (thats what I did in my vid)
:: Do the lap, then record the GTR recording of your lap
The latter would let you make it more 'hollywood', with more angles, with zooming, panning angles, etc.
I then used Sony Vegas (30 day trial) to 'bling it up' (saving it as an AVI file) and converted to DivX with DivX Converter (http://www.divx.com), though Sony Vegas will let you save the movie in various formats.
I found DivX gave me the best detail for the size of the video.