The goal is to do a video for customers by screen capturing (preferred on a Windows 7 system but an answer for Ubuntu Linux would be helpful as well) a video, recording the audio with a microphone, and be as cheap as possible. We tried Microsoft Expression Encoder 4 SP2 but it had issues running on our workstations and would not start up. Then we looked into VLC because it is free and cross-platform.
Instead of using the "Desktop" Capture Mode, I am using "DirectShow" and downloaded a free DirectShow screen capture codec (Setup Screen Capturer Recorder v0.9.7pre.exe... I wish I kept the site I downloaded it from). This allows me to record my voice by specifying the audio input and then specifying the screen-capture-recorder from the video device name. Pretty easy. None of my settings ever save so each time I make a video I have to set the video size, aspect ratio in Advanced Options and find the path to my Destination file folder. A little annoying but livable.
Here lies the problem: How do I capture more than 1 monitor? I tried changing the video size but it errors out. Not specifying a size fails to record. So that does not help. I may be doing up to 4 monitors in this video capture because our software can run on several monitors. Our video cards and CPUs are fairly beefy so they should handle the video capture.
Secondary question: How can I capture both the audio outputted by my speakers (from the audio out line) and the audio from microphone at the same time?