Well, the first thing I noticed is that you've got a lot of UI blocking the action in video #2. It really takes a lot away from the video imho. I much prefer the first video for this reason.
As for the picture quality, youtube loves to stomp on that. What resolution did you use in your video?
You can write your own demos, though I wouldn't suggest writing one from scratch. You can do just about anything in editing demos, whether it's changing camera angles or making NPC's do dance emotes. Just how you do all of that can be a bit of a long explanation though, so I suggest reading a few guides on demo editing.
What type of video should you make? Well, that's up to you. If you have a concept for a story video, then by all means go for it.
As for having to buy stuff? Well, you can go out and buy video software and whatnot but it's not something you have to do. You can still make great videos using what you have now.
The best advice I can give anyone on making better videos is simply to keep making more videos. As with anything else, you get better as you gain experience. Also, get inspired! Take a look at what other people have done, see what you like/don't like about different videos and think about if that's the sort of thing you'd want to make. The fan videos thread at the top of this forum is a great resource.
And one last thing- always feel free to ask questions. Even if you're stuck on something simple, there's probably at least one person that has had the problem before you.
I look forward to seeing your next work, good luck!
You can get almost all the CoX music at ftp.coh.com under music.
I know there's one animation not playing right now but that's on the Widows, not a plant/thorn.
You might want to look at WeGame.com and their video recorder. When you don't pay for FRAPS, it's pretty rough. Also, there is a command in the game that will let you hide the entire interface. Check in the options menu under the keyboard controls. You'll need to pick a key to use for it.
As to answer you "where can you get more music" question. Your computer simply. If you're using Windows Movie Maker all you need to do is drag and drop the sound file into your "Imported Media" section and then from there add it to the sound portion of the timeline. You can always buy more CDs and rip those to your computer if you don't have the song you want already on it or use something like Itunes to buy more songs.
"while some people would say fish, cow, ambush!"-Ice9
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You can always buy more CDs and rip those to your computer if you don't have the song you want already on it or use something like Itunes to buy more songs.
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<AHEM> Probably not a good idea to go recommending illegal activities (assuming the OP actually intends to share this video).
I didn't mean to download the CD illegaly i ment simply if you own the CD already just copy it over onto your computer which i didn't believe to be illegal. Though if it is Windows Media Player taunts me with its "rip" option. Well unless you're thinking of the copyrighted material then yes but then most of the videos on youtube shouldn't be there. The OP can always buy license free music to use in the videos or the Co* music which we are allowed to use.
"while some people would say fish, cow, ambush!"-Ice9
Ok, I used wegame for the 3rd video. This time I made it of my grav/elec. I messed around w/ music and the sound is a little off (you have to adjust your volume during the video or it gets annoying...).
http://www.wegame.com/watch/Celestial_Energy_Solo_22/
Thanks for all the tips. It seems like the videos are getting better at least. 
Well...I made my first 2 videos and I would like feedback on how to make them better. I'm using fraps, zloth's demorecord player, CoV, and windows movie maker. I'm wondering how I can improve the quality of the picture since it looked MUCH better on windows movie maker. Also, I'm not sure how to get more songs for my videos, where could I find some at? I can't get the sound of CoV to appear on the videos either nor some of the attack animations. Does anyone know why some power animations show up and others don't? Also, I'm thinking of making a short story video, would that be better? Also, can you write your own demos? If so, how would you go about doing that? I'm on a very strict budget so if I have to buy something, please make it cheap.
Edit:
1st Video-
http://www.youtube.com/watch?v=ohr6-XIQugM
2nd Video-
http://www.youtube.com/watch?v=x4loz...eature=related