VS x2 Camstudio editing problems

[Papa's films]

Hi,
I have downloaded Camstudio. It seems to be working fine on my computer. My work order was this. After I record my screen for a few minutes, I exit Camstudio and open VS pro x2. It seems the only way to get the video file into VS is to import it into video clips. I tried to capture it from the file but VS will not let me do that. When I try to edit the .avi file in VS, the program takes forever to do anything and finally shuts down. The codec on Camstudio is Microsoft Video 1. If I do not try to edit, but just play it in VS, the quality is very bad, and if I burn it to a DVD the quality is very bad. Please help. I know I'm probably addressing multiple issues, but I would really like this project to work.