Here’s my test of audio/video screen capture using Adobe Captivate, in which I use Google to find Waldo. It was recorded on a Windows XP machine with a Logitech Desktop Microphone.
The final video is actually a series of Flash audio and video files. I can’t easily insert it into this post, so I’m attaching it as a ZIP file.
Observations: Captivate does a decent job of capturing audio and video, but it does not offer non-Flash export options. This means it won’t work for our purposes; we want to easily be able to export video to common formats for later viewing/editing.