*10/16/2011 Updated to new method*
To record your computer screen and save it as video, there are many different software available. Some professional ones like Camtasia Studio costs $299.
I tried many different software that does the job but so far this is the best freeware solution.
CamStudio is an open source (not related to Camtasia Studio mentioned above) software that is simple to use and does the job well. It even supports recording the audio that's coming out from your speaker.
1) Go to the Download section of the website and grab the release version (I haven't tried the beta version though). Install and launch it.
2) There are several options that you might be interested. First one is Options > Video Options which allows you to set the quality (and hence the final file size of your video), video codec used, and other geeky stuff. If you're not sure just ignore them. Then there is Options > Record audio from microphone/speakers for those that need it. Options > Cursor Options to hide/unhide your mouse cursor.
3) Click the Region menu button to select either Region or Full Screen. Region allows you to only record one area on your screen, which will be defined by you upon recording.
4) Click the red color 'Record' button to start recording! Upon finish, it will ask you to save the AVI movie file :)
Read this section if you're unable to use 'Record audio from speakers' option
Most PC needs to be configured before it can use this feature. Here's how to do it on Windows 7/Vista:
1. Select 'Sound' in control panel.
2. Click 'Recording' tab.
3. Right click on the background of the tab and choose 'show disabled devices'.
4. Right click on Stereo Mix and click enable.
5. Make Stereo Mix as default.
6. Start Cam Studio
7. Go to Options > Audio Options for Speaker.
9. Choose at Soundcard Device 'Stereomix'.
10. Go to Options and enable 'Record audio from speakers'.
Ignore the error message that pops out after that.. it should still work.
PS: For other version of Windows such as WinXP, the procedure should be similar; You just have to make sure 'Stereo Mix' is enabled in the Record section. Good luck!
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