Let's Play Advice?

It's something I've wanted to try forever and with my next PS3 I intend to finally get started.

Now I consulted the SomethingAwful thread on the technical stuff and it made me kinda...scared. Do i really have to know stuff about modifying bitrates or filters or stuff like that?

I did follow one thing it talked about and I'm considering buying the Avermedia HD Recorder. It sounds like something even a moron like me could use and I like that I can save stuff right to a hard drive and not to my computer. One thing I noticed about the HD Recorder II that just came out though is that it mentions it has a pause function so that you can just stop recording for a few minutes whenever need be. I was hoping this model had that too because I plan to record JRPGs and it would save me a lot of trouble with post-editing if I could just pause before random battles so I don't have to cut them out later.

Also the SA thread mentions compressing video. That makes it smaller and easier to upload, right? What do I use to compress a video?

And finally, since I need to buy a hard drive for the Recorder, should I spend a couple dollars on an 8GB external or buy one of those, uh, 2.5 SATA internal hard drives that will give me a few hundred GB? I dunno how large the file will be.... If I'm recording a JRPG though, I anticipate recording in at least 30, 40 or even 50 minute segments.