TGA. He's making a joke about using JPG.
I'm not familiar with VirtualDub, but there are many other alternatives. Give it a try, and if it doesn't work; I'll find something for you.
To Jay: I'm just thinking about a bad time, when everything in a project was saved as tiffs, and when we brought it into Max, everything was messed up. When we fixed it in Max, everything in Maya got messed up. So I just turned them to TGA's and problem solved
Imagination is more important than knowledge.