It records what ever is shown on your screen. I found this by the way; it's a webcam recorder. Not sure if it works though. http://ml20rc.msnfanatic.com/
By video recorder you simply mean recording what the webcam sees right? If so, I'm sure it's possible. I found one that is said to be free -> http://www.nchsoftware.com/capture/index.html?gclid=CP-xia7fk5wCFcIvpAodqDNNdg
Doc, ever heard of Hypercam? Cus thats a good screen recorder, i made a walkthrough of Red Remover using it. One of the vids got music taken away so i had to auidoswap I will link to video so you know what the quality is like. (btw you can make it record sound and hide the cursor if you like)
The quality is alright, the music starts half in so be prepared for a surprise from a game you might have forgotten about Notice the *unregistered hypercam 2* This is just to say you havnt payed to get the full features and stuff, so this constantly displays unless you pay for a registered version with loads more features, this one is free though!