I record in a few ways....
1.) Direct Input - I use an amp modeler (in this case a Behringer V-Amp Pro), plugged into the line-in jack on my computer from the headphone Jack on the V-Amp. I plug my guitar through it's FX into the V-Amp. I just use a webcam, right now I use 2, an HP for close up (it's really good for that but blocky from far away), and a Logitech I use for all the usual far away stuff. I just use the CrystalEye camera on my Acer D250 Netbook for the rehersal/recording session videos with the band.
2.) Micrrophone - I use one of 3 different Mics (a cheesy $9 wally world special condenser mic for Skype users, a $10 mic I bought at the thrift store that's of surprisingly good quality (Dynex 2000), and a First Act from Wally World). The Condenser I used to use for those vids but have moved it to the rehearsal space for those vids since it picks up super loud amps well without overdriving much on my netbook. The Dynex sounds the best but it's a little tempermental because I need to solder a wire that's been loose since I got it, and the First Act is the second best but it's a little too midrangey at times.
Sometimes the mics go into the mic input (always for the $9 mic), the Dynex sounds best through the V-Amp on the Tube amp Sim, and some EQ/SFX from the Virtualizer as of late.
The simplest and best sounding is #1. #2 has more to do with mic placement. I also focus my camera before I record vids (usually).
Sometimes, like in this year's guitar collection vids, I used the Microphone built into my webcams, but I usually prefer not to because the sound is not as good as if I used an external mic. The mic on my webcam really sucks, it clips with anything turned up over 3, even with the input sensitivity turned down.
