Blender 2.5: Render Settings
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This video is explaining how to render your animation out of blender 2.5 as a movie, still, or image sequence. It shows how to change the resolution and codec at which you rendered and how to add an alpha channel. Please note not all video codes and image types suport alfa channels.
The hot key for camera mode is numpad 0 not numpad 1. I apologize for getting that wrong.