I use Fraps for my recording device, and a Blue Snowball for my Microphone. My editing software is Sony Vegas Pro 11, which is expensive as hell unless you pirate it (fuck the system). The Blue SnowBall is like $60, but I had an investment in it anyway. Starting off, I would just used either Hypercam or fraps as a recording device, and for a Mic, it depends. If you want to sound really clear like I do then you'll be shelling out some doe, but if you don't really care then there are really cheap alternatives. Editing software is the hardest part. If you're too "scared" to pirate Vegas, then just use Windows Movie Maker, which is free, and still gets the job done. There are again some alternative out there, but not that many. Hope this helps.