Well, at this point I've only created test slideshows and converted them to video. I won't start doing the actual slides until I have the process down pat.
But to answer your question, the idea is to create the slides, record my narration as I move through the slide show, and then have the whole thing saved as video. That way I can distribute the video online (YouTube, for example) and it could be viewed on all kinds of devices just like any YouTube video.
If your pc has hdmi output, you can play the presentation into a Hauppauge HD PVR connected to a second PC to capture exactly what the first PC puts out. Some of these also have rgb input. I have used mine to capture old VHS tapes and to transfer video from my direct tv dvr.
Double check the “Record Narration” quality setting. I suspect you may be using a low quality setting. Change it to stereo and a higher bit rate and see if that helps.