No it didn't, it didn't even record video. The .REC files were recordings of player locations and stuff like that, remnants of old Torque engine stuff. It never worked.
This.
The only time I ever got a recording to play in retail (literally, I only got it to work once) it was back when we couldn't turn rendering off on bricks and we needed invisi-paint. Someone made an invisible slide and I did a recording of myself going down it, and when I played it the slide appeared default brown instead of invisible, and the invisi-paint was not a part of my colorset.
Poll