Ive noticed some DF PLayers recording gameplay footage
 

How do they do that with a webcam or is there a key for it when playing game to stop it and play it and pause it lol.

yep - fraps is a video recording program, quite good but quality is quite pants, looks good tho when u got music in with it :)

fraps doesnt do bad quality, u must have done something wrong.

check out >> http://own-age.com/

find one on there that is not good quality