I am looking for a screen recorder program to record step by step How-to demo for my products. I would appreciate if someone could suggest a good and inexpensive screen recorder software?
Wisdom http://www.wisdom-soft.com/ has a couple programs that may work for you. I have an older version of Screen Hunter I use every once in awhile and it looks like they also have Auto Screen Recorder now that can produce Flash files that may work for you. There are Free versions of both and if you like the product you can upgrade to their Pro versions for under $50.00
I think what you are asking is how can you play video files on webcam? If that’s what you are asking then you can use fake webcam or webcam simulator or a program similar to those two. There are many out there. Fake webcam is free I guess.
You would need to use a third party program eg screen vidshot
http://www.geovid.com/Screen_VidShot/