Recording fights is a nifty idea indeed, but where would you store the video clips? I don't know how CamStudio works, and maybe it has tools for that. But, I don't think players should be able to store it on their own hard drives. If that was the case, then could players hack into it and edit it? If players changed their videos to what they want, then using them as proof of how a player fights wouldn't work. Storing them on the server would build up used memory space over time, and with new players coming in, the increase of video files would only go higher.
However, the "Watch" idea has already been suggested many times, and I still support it 100%. It'd need some tweaks though. How many people can watch? It can't be too many, because lag would skyrocket! Also, how would you deal with chat from the spectators? Would they even be allowed to chat? If they were, then a new in-game chat system would be in order...I might post my ideas on that later.
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