Best Screen Recording and Annotation Software?

I would like to record myself demonstrating software on my computer screen while I voice annotate it. I'd like to put these videos either on my website or maybe on Youtube for clients to view to explain how to use this software.

What software can you recommend to do this? Ideally I'd like free software or at least something I can try first before purchasing.

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I've used quite a few. The best so far is Video Replay Capture. You have the choice of 2 x great codecs:
MPEG-2 or WMV9.  You can also adjust the bitrates for better captures etc. There is a free trial.
I use this 

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greg wardSystems EngineerCommented:
I use snaggit
FrylockAuthor Commented:
Points to Murali - it works and it's free.

I tried VRC and it worked pretty well but cost money.

I didn't try Snaggit but it also costs money.

Thanks for your help, guys.

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