*snip*
I can sync my microphone with the video so I can record as I play. It's pretty sweet, but the file sizes are massive
Not to backseat moderate or anything, but I might mention that I'm fairly sure it's against the forum rules to suggest bad (and especially illegal) behavior.
Anyhow, dxtory does pretty much the same thing. It allows me as well to set up several recording sources for audio and thus records several audio streams.
For example I can record the my own mic, the in-game sound and for example a skype conversation or something at the same time and it's all outputted as individual file streams, so in the video editing software I can just edit them individually. For example I can lower the game sound at a only a single point whilst keeping the other sounds as they are or I can mute my friend who's screaming something whilst I'm trying to say something else.
It also has options for using different codecs and encoders (including 3rd party ones!) with varying compression to either have huge uncompressed files with excellent quality or much smaller files compressed ones with almost as good quality.
You can choose also between different file formats depending on the coded used. For example you can output as .avi or .mp4 or .wmv or whatever else you like.
As for free ones, once again I don't know any I can recommend. I've heard camstudio should be decent and I suppose hypercam (if it's still around) isn't too bad.
The free version of Hypercam I know has a small watermark up in the corner, but it's not too bad and you can kinda bypass it without breaking the law by simply editing cropping it out when editing the video, although you will lose a slight bit or the corner in the recorded video by doing this.
EDIT: It seems like Hypercam 2 has now been made free and the watermark has been removed as version 3 has been released (which is however offered as a free demo with the aforementioned watermark).