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From the previous thread, Zappy pretty much explained very well why image sequence is best.
I had used other format like mp4 years ago but it's not worth it anymore.
As for MP4/MOV exports, Source Filmmaker requires Quicktime for those, but it's an actual security risk for Windows[www.us-cert.gov] and as such should not be used. Even then, it's not even that useful anyway due to the bad quality Source Filmmaker exports MP4/MOV videos at.
So the only remaining option is image sequence exports, which is also what's preferred and "best" (in the sense that you don't have to re-render everything if you change one thing and that you can set up the final video quality to be just as you want it to be).
When you do an image sequence export from Source Filmmaker, you will get many individual image files and (optionally) a sound file to go along with it. You can then use almost any video editor (besides Windows (Live) Movie Maker) to import the images with the correct framerate, import the sound file too, and export that as a video. The below guide covers this process using Blender (which is free, is available on Steam, and can be useful for other things), but again, almost any video editor will do for this.
http://steamcommunity.com/sharedfiles/filedetails/?id=375229570 (Do note that it's perfectly fine to export as AVI/MP4/MOV from a video editor. (Basically) Only Source Filmmaker has this bad AVI/MP4/MOV export implementations.)