Go to Setting (picture of gears) > Right Light Settings (picture of eyeball) > Turn off automatic Right Light
I think you'll find that will help a lot with the video "ghosting" that you see in that video.
I would also emphasize that you need a good deal of lighting when using the camera, it will only increase video quality.
And lastly I would record it in a lower resolution, maybe VGA (640x480), because, as you said they are compressed again by youtube so there is little need to record in such a high resolution.
Also, while the camera itself can support 30fps, the default setting in Quick Cam generally limit it to 15fps. But with some minor tweaking you can achieve 30 fps in Quick Cam.
Trust me, I know what Im doing.
I would really appreciate it if you told me how to do this.
I've looked everywhere - help file and all, and I cant find anything about frame rate. 15fps is just too slow for a guitar video. I record in HD resolution for PC playback (I tried recording several things at different resolutions and they were all 15fps)