Yep, there're few screen recording software do great jobs with Windows 7, though the new system has released for couple of days. Howeverm I find one which reacts so quickly to make itself work with Windows 7, that's DemoCreator. I just use it to create some desktop tutorials and web demos. Once you mentioned video and audio, it allows you to make narration while recording, furthermore, you can edit or remake your sound tracks with its audio editor. Of course, Camtasia is the greatest program, but it's quite expensive to me, and what a pity if I can't make full use of its all powerful features :P