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1.Click on "capture audio or video" and "OK" 2.You can usually accept the default settings so just click "next". 3.Give your file a name e.g. "my message" and click "next"
     
4. Leave the Content Distribution as Windows Media Server (streaming) and click "next" 5. Leave the encoding options as Multiple Bit Rate (CBR) for audio and video and ensure that the default Total Bit Rate of 282 KPBS (29.97 fps) is checked and then click "finish". (if you want you can fill in details of your movie in the next box but it is not necessary. 6. Your recording should start automatically.  You can stop and start it using the red and green start and stop encoding buttons.  Allow the encoding to run for a few seconds before you start speaking.  This will allow you to trim the first few seconds away using Windows Media File Editor which also comes free in the download.
How to create your video message
Making your video is easy. If you haven't already got a web cam, you can get one here.
You should be able to plug it in to your PC using one of the the USB ports on your computer.
Download a free copy of Windows Media Encoder here.  Install it and it will automatically detect your webcam. 
USB Port
 
 
 
 
Using Windows Media Encoder
Download Windows Media Encoder
Step by step instructions