Earlier we wrote about the Problem Steps Recorder (PSR) tool in Windows 7. It’s a nice tool that records the steps to reproduce a problem in the computer, and stores the data in a MHTML document. Here is another tool from Microsoft Technet which helps you record the steps you perform in your computer and store it in a video (.WMV) file. It’s the ScreenRecorder utility, which is similar to Microsoft Camcorder (utility written for Windows 95/98 which saves the output to an .AVI file). ScreenRecorder works in Windows XP (.NET Framework 3.5 SP1 or higher), Windows Vista and Windows 7.
Screenrecorder uses Windows Media Encoder to capture the screen and save to a WMV file. This can be very helpful if you want to capture the steps to reproduce a problem, or create a tutorial video to send it to someone.

Note that there is an option to record audio as well.

Here is a sample tutorial video that I just created using ScreenRecorder.
Error occurs When running the tool in Windows 7/Vista
Windows Vista and Windows 7 users may get the error "ScreenRecorder has stopped working" when running this tool.

To resolve the problem, download and apply the Microsoft Hotfix 929182 from the following Knowledgebase article:
(via Microsoft TechNet)
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