Recording software for QA

Camtesia is not free and pretty much the standard. You may want to look at Camstudio which is a free alternative.

It's usually best to have QA testing software in VMs rather than on a real machine, if they're using VMWare it can be asked to record a video - which seems to work great.

"Problem Steps recorder" in Windows 7.
Records screen and interactions and creates a nice zipped HTML archive, that you can save and send via email.