First download http://www.smallvideosoft.com/downloads/freez_screenvideocapture.exe
Once installed and run, you will see the following screen:
Now, click on "Options" and you will see the following:
These are the maximum settings you will need for recording Flight Sim video, you can reduce them as you wish.
Now start up your flight sim, but this is the important part ... You must set up your screen in a window so it does not cover the video recorder winder - like so:
When you are ready to record, hit the record button and some crosshairs appear. You must now select the area of the screen you wish to record - as demonstrated below:
As soon as you release the selected area, the video starts recording! Please note, using the F7/F8 hotkeys will not work (so I have found thus far) as obviously Flight Sim has them assigned to other functions.
Start flying!
When you are ready to finish recording, just hit the "stop" button, you will be presented with a "save as" box where you can select where you want to save the video clip.
DO NOT SAVE IN THE DEFAULT DIRECTORY, save file in your documents or to your desktop. For some reason, if you save them in the default directory - they disappear
Post to YouTube!
NOTES
These instructions purely reflect my 1 hour's worth of experience with this program - please feel free to post any tips/enhancements to these instructions you may find.
You can either record "live flight" or an "instant replay"/"Flight Video" - for obvious reasons, recording an instant replay or pre-recorded flight video is less fiddlely
In the options there is a way of pre-selecting the area you wish to record (a "fixed region"):
but I have yet to test this and also it relies on the window you wish to record NOT MOVING even a pixel in any direction.
EXAMPLES OF TESTS
Ignore my flying skills, I was too busy trying to figure out how to record the video!
e.g. One:
Recording a "live flight"
e.g. Two:
Recording an "Instant Replay"
e.g. Three:
Recording a "Flight Video"