OK, as a followup, I got a chance to play with some of the tools suggested.
- Wink looked OK, but just didn't cut the mustard. I think the way it "records" is just really inefficient, audio that is layed over the top is also pretty poor due to the gaps the frames produce.
- CamStudio looks and works pretty damn good! The AVI output is great quality (both audio and video), I don't experience any lag while it is running. However - the flash conversion does not seem to work at all for me? I end up with either a white or bitty flash file? (read "useless") Any suggestions?