Yeah they probably do, if your on a budget you can use Windows Movie Maker to stitch the clips together which is free. Capturing as an Image Sequence is usually better as it means if you want to change a small section of the animation you need only re-render the frames you need, also it means you can change your mind about compression etc at a later date, there are other reasons I just cant think of any right now. Image sequence is the industry standard method.