Also, QuickTime player has a feature right on the file menu to do a screen recording.

http://i.imgur.com/JvmiM.png

I know there are other tools, but it's hard to beat built-in.

Regarding font rending, there's an old article by Joel:

http://www.joelonsoftware.com/items/2007/06/12.html

but the main point is this image. Take your choice.

http://i.imgur.com/qMmXt.png