Shawn Patrick From United States of America, joined Jan 2000, 2588 posts, RR: 18 Reply 7, posted (10 years 5 days 18 hours ago) and read 1884 times:
Advanced MP3 Recorder records directly into MP3 audio format. Can record straight from your soundcard.
Another way to do this is to simply record in Sound Recorder into a .wav format, then use a WAV > MP3 converter to compress it, as .wav files are huge. dBpowerAMP is a great, simple, free program that will do this for you. Before recording, in Volume Control, you'll need to select the recording source as the sound output source.
As far as video, I don't know any programs that do this, but I'm interested if someone else knows of something that does this...