Follow along with the video below to see how to install our site as a web app on your home screen.
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So cut off an extra frame or two at the beginning and end of the clip you're trying to save. When you save with VirtualDub or its derivatives, you want to save as Direct Stream copy (the option is under Video and Audio accordingly). This keeps the original format of the file (whichever compression format it was using) and literally just "snips" out the part you define in the selection.
One issue: VirtualDub can't do MPEG stuff, it really is designed to work with AVI format stuff (yes it's a container format, that's a given), so if the file is MPEG1/2 (requires one of the mods to handle MPEG2 content), it won't snip/save as that format, it'll need to use a DirectShow compression filter like DivX, XviD, etc. But if you're already editing DivX/XviD/etc format in AVI containers, this is all a non-issue. VirtualDub can do snips/edits on MPEG1/2 stuff, it just can't save to that format - there's a plugin I think to use BBMPEG of FFMPEG somewhere out there iirc.
If you end up with one or two frames at the beginning or end you don't want, simply move to the frame(s) you want, press the Delete key and they're gone, then save again with Direct Stream copy enabled for Video/Audio.
Been using VirtualDub for nearly a decade myself, and I swear, even now so many years later, considering it fits on a floppy (1.04MB total installation size), it is mind-blowing how much stuff this application can do and is capable of.