However, there are a few minor tweaks you need to make.
Step 1: When you've launched the recorder, select Tools > Options.
Step 2: Change the settings to the following:
Step 3: The rest of the settings should work fine. If you don't hear audio in your recording, then change the source in the "Audio" tab shown in Step 2.
This will allow you to capture smooth, live streaming video with a smaller file size.
I made the mistake of using Techsmith's codec and ended up with a 6.2gb file for only 15 minutes of video footage. AND...the audio became corrupt after the 9 min mark. Apparently it's a known issue. I'm not happy about this...but I would like to help others along the way.
So, if you're planning on recording anything live on the internet, these are the settings that meshed well for me.
As usual...and it goes without saying...make sure you have permission to record.
Xvid codecs can be obtained here: http://www.xvid.org/Downloads.15.0.html