Avi won't work

[Zman9300]

OS: Windows 8
Video Card: nvidia
Memory: 16 GB
Monitor Resolution: 1920x1080
Video Editor: Vegas 13
Game Problem: so whenever I make a video (toontown) on action I go to upload on YouTube and it doesn't work. But when I use bandicam avi it works. For some reason the MP4 works but the quality stinks. ease
Help
Video Type: AVI

[radi]

Action! AVI files are not supported by YouTube due to FICV codec.