CamStudio 2.0 can record all video and audio activity in your computer, either you can choose a region or just record the whole screen! Only downside are there is no zoom option, and no other formats than AVI and Streaming Flash Video (SWF). But unlike other commercialized video capturing software, you can record to your hearts content, and not worry about any time restrictions, or annoying brand watermarks on your recordings.
I would gladly recommend this software to those people who doesn't want to spend large bucks, just to record their favorite game, or even make a demonstration of their gameplay.
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