CamStudio is able to record all screen and audio activity on your computer and create industry-standard AVI video files and using its built-in SWF Producer can turn those AVIs into lean, mean, bandwidth-friendly Streaming Flash videos (SWFs). You can use it to create demonstration videos for your web application.

CamStudio can also add high-quality, anti-aliased (no jagged edges) screen captions to your recordings in seconds and with the unique Video Annotation feature you can even personalise your videos by including a webcam movie of yourself “picture-in-picture” over your desktop. You can download and use it completely free for your personal and commercial projects.

Requirements:-
Demo: http://camstudio.org/
License: GPL License