For recording:
Fraps (It's Free!)
For editing:
Sony (This Costs Money!)
If you just want to make a video and upload it to YouTube, just use Movie Studio 11.
If you actually want your video to be good quality, use Movie Studio Platinum 12 or the Suite version if you have the money.
If you're rich and powerful, buy one of the Sony Vegas programs.
The Movie Studio programs do have demos that you can use for free until you get the money.
(I know what you're thinking - buy all of them and have the ultimate Sony video editing system. NO! They are all completely different editing programs. You should only buy one.)
OPTIONAL, HOWEVER RECOMMENDED IF YOU HAVE THE MONEY(These you can all buy to "improve" your video after it's already been edited.)
If you want AMAZING visual affects, also get Movie Studio Platinum Visual Effects 2 and/or Imagination Studio 4.
If you for some reason want to put some of your videos on DVD or Blu-Ray, also use DVD Architect Studio 5.0.
If you don't know how any of this stuff works, you can get Vegas Pro Production Assistant and/or The Seminar Series: Vegas Pro 12.