How do I Use Droid X Camera for Recording with Best Quality
Using the Camera
1. Press and hold the Camera Key on the right side of your device to activate the camera. You can also select the Camera application from your homescreen or applications tray. 
2. Rotate the device to the horizontal position (for landscape orientation) and frame your subject.
3. There are several settings just from the camera view finder screen
a. Scenes - tap to select a setting for better image capture under different lighting environments: Auto, Portrait, Landscape, Sport, Night portait, Sunset, Macro, and Steady Shot. camera screen has descriptions of each mode.
b. Effects - tap to apply different color effects on images. Effect modes are: Normal, Black & White, Negative (inverts the image color), Sepia (for an “antique” look), Solarize, Red Tint, Green Tint, or Blue Tint to apply tints to the image.
c. Flash - tap for Flash on, Auto Flash, Flash off.
d. Switch to - tap to switch from Camera mode to Camcorder video.
e. Camera Roll - tap the thumbnail in left corner of camera viewscreen to bring up your Camera Roll as see all photos in your Gallery.
f. Tags - at at top of view finder to set Auto-Location/GPS or Custom tags to your photos.
4. Use volume keys to Zoom in or out.
5. To take the photo, lightly press the Camera button halfway to focus (focus is complete when green box appears) then press the camera button all the way to take the photo.
6. If you have review time set, the image you've just taken will briefly show on the screen.
7. You can tap on the image to get these options:
a. To share the photo via Bluetooth, Email, Gmail, Online Album, Photosharing, Picasa, Print to Retail, Send in email, or Text messaging, Touch Share.
b. To set the photo as a wallpaper, contact photo, or social network profile photo, touch Set as
c. To send the photo to a preset social network, service, or other location, select Quick Upload.
d. To delete the photo and return to the viewfinder, touch Delete.
8. Thumbnail of the photo you've just taken will be in the bottom left of the viewfinder.
To see all your photos, tap the thumbnail in left corner of camera viewscreen to bring up your Camera Roll (Picture Gallery)
While at the viewfinder, touch Menu > Settings to open the camera menu:
Picture Modes:
Single shot - Normal camera mode. Use when you need to take large 8MP photos. (any image resolution can be used in single shot mode).
Panoramic Assist - Use this to take either horizontal or vertical panoramic shots. Resolution is automatically set to 3MP. The camera will automatically try and shoot 6 frames for the panoramic photo, but you can press the camera button to stop and capture the panoramic photo at any time - even before you have finished filling the 6 frames.
Self Portrait - Puts camera in face detection mode and will automatically take a photo of your face or any face it locates in the viewfinder. You will not be able to press down and use the camera's capture button in this setting. Camera takes photo automatically when faces are found. All resolution sizes are allowed.
Multi-shot - Use this setting to take 6 shots back to back without multiple camera capture button presses. Pictures are automatically taken at 1MP resolution.