The CamStudio codec comes with its own Lossless Codec that does produce crystal clear video and audio results with a much smaller filesize compared to some of the other more popular codecs, like Microsoft Video 1.
The LZO codec is a Windows video codec. It makes use of a lossless video compression which has 3 steps: the first converts RGB information to YUY2 (as needed) then makes a compression algorithm of your own, and last uses the algorithm to compress the information.
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CamStudio Lossless Codec is optimized for screen capture applications. It complements the other CamStudio Screen Recorder and is able to encode frames at high speed with perfect quality. See other codecs if this does not work.