In order to convert these flight recordings which you have done using the free simulator software into mpeg movie clips, you need to playback the recording and recapture them into mpeg format, once that is done, you can cut the mpeg file into a VCD or DVD movie which can be viewed in a normal VCD or DVD player.

Here is one software which I have tested that can do this job. It is a screen recording software that is able to record any screen action as AVI file which can be later converted into Mpeg movie formats.
You can download and view a demo mpeg movie (5.4 MB) which I have created using this software. This demo is a Thunderbird formation flight display where I was 'flying' in the lead role.
I was attempting to lead the formation to do a 'swan roll'. The challenge in this manouvre is the one flying at the extreme wing position. In this case, I leave the computer to do this difficult task. I just make sure that I do not roll too quickly so that the wing aircraft could follow me through the manouvre.
For this screen recording, I have set the Video Capturing configuration in ScreenVirtuoso as follows :
1. Key Frame = Every 1 frame
2. Record Rate = 10 fps
3. Window size = 401 x 307 (The larger the size, the bigger the avi file generated)
Basically, this is how it works in a nut shell :
You have to first replay the flight recording using the free YS Flight simulator software.The ScreenVirtuoso Software will record your screen replay as AVI file. Note that the larger your recording screen size, the larger the avi file size recorded. So make sure that you have sufficient harddisk space available.With this AVI file, you can edit it using another video editing software like Ulead Video Studio SE (which I did) or get the ScreenVirtuoso Professional Edition which comes with a MPEG conversion option to convert the avi file into various mpeg formats (VCD, SVCD, DVD - NTSC, PAL).When you are done converting into mpeg format, simply cut the mpeg movie onto VCD or DVD media using any VCD/DVD Maker software in the market.Why not give it a try, it is not as complicated as it may seemed. It feels great when you have produced you own simulator movie where you can cut onto a CD. Just download ScreenVirtuoso software for a free trial to experience how it works. It is a small piece of software which is easy to install and use. It took me only about half an hour to understand how it works and within an hour I was able to produce a short mpeg simulation movie file.
Note :
The recording software does not automatically record the engine sound of the simulation playback flight. Although the software have the capability to record sound, it cannot record the sound from the YS Flight Simulator software as input source.