I am not really up to speed on Machinima, but I am going to try my hand at some recordings this semester.
I found this awesome FREE software called WeGame. It is totally free and was built to record video games and virtual worlds.
Where did I get this lovely nugget of information? Every week, Butch Dae (RL George Kurtz) sends out a VIT update of cool tools and articles. This was one of the tools.