I strongly urge you to read the AE help before delving into such specific stuff. Most of your questions can be easily answered...
The video has become 2.5GB and its only 25 sec's.
Compressed it with Windows live movie maker, and i lost the sound i'll figure it out later.
Now its only 47 MB.
I'm loosing allot of quality rendering and compressing the video, as u have noticed i'm a beginner so if you have software and settings u use for rendering and compressing, i would really appreciate it
Every time i try to make a movie with that effect it laggs allot, it looks like its skipping frames or something.E
Yes, you are using game footage. Even if it may have been captured at 60fps, not each of these 60frames contains discretely different pixel data. Games cheat a lot and in fact there may be the same pose for several frames, effectively having no motion at all. Twixtor doesn't know that and mathematically correct does - nothing. That aside, if you slow down to 25% you force it to invent 4 frames for every original source frame, making this even more critical and noticeable. I would assume that it really is perfectly normal. If you really wanted to change it, you'd have to change your capture procedure in the first place, meaning you record it at a lower frame rate to get better temporal separation between frames. Then you may be able to see some interpoaltion, but it will still depend on your settings and I'm afraids you need to spend much more time reading the Twixtor help as well. There simply is no magic button or universally applicable setting for such stuff that works on every type of footage. Annoying as it is, it almost always means you'll have to tweak motion sensitivity thresholds with every new clip. Just keyframing the vlaues rarely ever produces good results from the start...
I'll try and record it on 29.97 the standard twixtor fps, and going to read more in the help section.
I don't know why you are enabling Pixel Motion and frame blending. Twixtor does those things internally so there's no need to enable them in the clip. Unless you do time stretching in AE without the use of Twixtor the frame blending settings have no effect on the output. They may even add to the render times.
The key to good slow mo is frames. I'm with Mylenium on this one. The captured footage may or may not be 60 fps. The only way to tell is to step through the footage one frame at a time. You can do this with the page up and page down key in AE. If you really have a descrete image for every frame then your slow mo should work fairly well, especially at 25%. If you have several repeated frames then you will never get good results.
Also, It's my normal practice to apply Twixtor to a solid and then pick the video layer as the Color Source in Source Control. This avoids having to enable time-remapping or pre-composing clips when you want to use the whole clip. I think it's a cleaner workflow.
You might want to take a look at these tutorials from RE:Vision FX